NWSDB Annual Report 2007

Vision
To be the most prestigious utility

organization in Sri Lanka through
industry and service excellence
Mission
Serve the nation by providing sustainable
water & sanitation solutions ensuring total
user satisfaction
Goals
z Increase water supply and
sanitation coverage
z Improve operational efficiency
z Achieve customer satisfaction
z Increase commercial viability
z Ensure greater accountability and

transparency
z Promote institutional development
z Provide facilities and service support to

rural and marginalized communities
NATIONAL WATER SUPPLY & DRAINAGE BOARD
The National Water Supply & Drainage Board had

its beginnings as a sub department under the Public
Works Department with responsibility for the
water supply and drainage systems of Sri Lanka.
From 1965, it functioned as a division under various
ministries until January 1975 when it was converted
to a Statutory Board by an Act of Parliament.
In view of the vital importance of the operations

of the Board, the Government set up a separate
Ministry in 2007, to handle this subject. Thus
today, the National Water Supply & Drainage
Board functions under the Ministry of Water
Supply & Drainage.
The National Water Supply & Drainage Board is

the only organization coming under the purview of
this Ministry.
Around 77% of the population has safe access

to drinking water of which 32% is through piped
water supply systems of the National Water Supply
& Drainage Board.
03 Notice of the Report
04 Chairman’s Statement
06 Corporate Plan 2007-2011
08 Our Key Players
14 Our Performance
16 Summary of Operations
22 Water Supply
44 Sewerage
52 Development Works
56 Our Employees, Our Strength
60 New Focus
62 Report of the Audit and Management Committee
65 Financial Statements
Auditor General’s Report for the year ended
84 31st December 2007
92 Abbreviations
Notice of the Report
Hon. Minister of Water Supply & Drainage,

Ministry of Water Supply & Drainage,
Takahashi Building,
34, Narahenpita Road,
Nawala.
Dear Sir,
ANNUAL REPORT AND FINANCIAL STATEMENTS - 2007

NATIONAL WATER SUPPLY & DRAINAGE BOARD
In terms of Section 14 (2) of the Finance Act No. 38 of 1971,

the Members of the Board have the honour to forward herewith
the Annual Report and the Financial Statements of the
National Water Supply & Drainage Board for the year ending
31st December 2007.
Yours faithfully,
Channa Amarasinghe
Chairman
National Water Supply & Drainage Board

Annual Report 2007 3
Chairman’s Statement
During the year 2007, the National Water Supply & Drainage
Board continued its services to the people of Sri Lanka in the
domains of water supply and sanitation. It also made significant
contributions in the social and cultural sphere relating to water
supply and sanitation, improving the well-being and livelihoods
of the nation and its people. Consumer-awareness programmes
on water wastage and conservation were continued in 2007, in
addition to the Board’s usual activities.
The new Corporate Plan 2007-2011 commenced implementation

in the year under review. Quarterly progress was monitored and
presented to the Board of Directors by the seven Monitoring
Managers respectively charged with oversight of the seven goals
specified in the Plan.
Implementation of ongoing capital projects and preparation of new

project proposals for local and foreign funding continued in 2007.
Other approved projects were initiated and implemented. Among
these, the most noteworthy are the JBIC-assisted Towns North of
Colombo Stage I, a major urban water supply project, the Australia-
assisted Integrated Water Supply Project for Eastern Coastal Towns
of the Ampara District (Phase II) and the ADB-assisted Third Water
Supply and Sanitation Project, which extends water supply to rural
‘‘
areas. With the third ADB project, vast developments in water
NWSDB made supply and sanitation for rural villages and small towns have been
accomplished, utilizing the participatory and demand responsive
significant approach. Community-managed water supply systems maintained
contributions in the by community-based organizations (CBOs) were provided with
backup support, ensuring their sustainability. Taking into account
social and cultural all the above, by the end of 2007, NWSDB was maintaining 308
sphere relating to water supply schemes, delivering pipe-borne water to 32% of the
population. The others meet their drinking water requirements using
water supply and alternative means such as conventional wells, tube wells with hand
sanitation, improving pumps, rainwater harvesting and other simple systems.
the well-being and Two major rehabilitation projects for the Greater Colombo area
livelihoods of the commenced, one for water supply with JBIC assistance and the
other for sewerage with Austrian assistance. Another three major
’’
nation and its people projects started in 2007 were the Towns North of Colombo
Stage II, the Kandy sewerage project and Ratmalana-Moratuwa
and Ja-Ela-Ekala sewerage project. I take this opportunity to thank
the donor agencies and other financiers for their generous and
continued assistance.

4 Annual Report 2007
The capital budget for the NWSDB for 2007 was General Manager Eng. M. Wickramage retired in mid 2007
Rs. 27,250 million. Utilization stood at 77%, making the and Eng. K. L. L. Premanath assumed duties as his successor.
NWSDB one of the few public sector organizations to
utilize its allocated capital funds satisfactorily. It was possible to make representation to the National
Economic Council chaired by His Excellency the President
As provision for safe drinking water is a significant on long-outstanding issues such as water sharing, water
component under the Mahinda Chintanaya, NWSDB pollution, delays in land acquisition, VAT payments, non-
contributes in every way possible to make this visionary availability of local funds on time for capital works, etc.
approach to development a success. In keeping with Efforts are now being made to pursue these matters with
the vision of Mahinda Chintanaya, the sub-programme the relevant entities.
Randora was launched in the Hambantota, Puttalam and
Trincomalee Districts. The Ministry to which NWSDB belonged was changed in
mid 2007 to the Ministry of Water Supply & Drainage.
Measures to reduce non-revenue water were continued.
The activities originally planned under the NRW-reduction A special word of thanks must be extended to the then
project for Greater Colombo, though prematurely Hon. Minister for Urban Development and Water Supply
terminated, were streamlined and packaged into a new and the Minister for Water Supply & Drainage and the
project. Meanwhile, Randiya, a special water supply officers of both Ministries for their direction and guidance.
programme for the urban poor, continued during 2007. Special thanks are also due to the General Manager and
our staff for diligently attending to their work. Finally,
With due regard to the fuel crisis and environmental along with the Board of Directors, I would like to request
considerations, emphasis continued to be placed on customers to bear with us for any lapses on our part
reducing power consumption. with regard to water supply and sanitation services.
We are endeavouring to provide an improved service on a
Maintaining the staff ratio per thousand service connections continuing basis.
at a reasonable level was another important indicator of
performance in 2007. By year’s end this ratio had come
down to 8.23. Channa Amarasinghe
Chairman
The rehabilitation and reconstruction of tsunami-damaged National Water Supply & Drainage Board
water supply projects, initiated in 2005, continued in
2007 as well. The free delivery of temporary water 28th February 2008
supplies to refugee camps continued, this being considered
as part of the Board’s responsibility to the nation.
Sewerage facilities for these camps were likewise free of
charge. The Cabinet has now approved the introduction of
a sewerage service charge.
Restructuring of the NWSDB was initiated in the year

under review, with improvements to the existing structure -
mainly dividing the whole operational area to three zones
(Western, Southern/Eastern and Northern/Central) with
an Additional General Manager for every zone and the
provinces headed by Deputy General Managers.
A separate division was established to handle sewerage
activities, with an Additional GM as its head.

Chairman’s Statement
Corporate Plan 2007-2011
IMPLEMENTATION STATUS
The NWSDB Corporate Plan 2007-2011 was prepared in
September 2006 with assistance from JBIC. This was done with
the participation of representatives of all stakeholder groups and
our own staff at all levels. Now the Board is working steadfastly
towards the achievement of the goals and objectives set out by
the plan. Special emphasis was given to formulating policy matters,
setting procedures and planning items relating to the first year of
implementation.
It was specified that quarterly progress on the Corporate Action

Plans be presented to the Board by the manager accountable
for every goal (there are seven such goals, each overseen by a
designated Accountable Manager). Accordingly, first-, second- and
third-quarter progress reports on the Corporate Action Plans were
presented to the Directors at Board meetings held in 2007.
It is required to have timely review for the successful achievement

of the goals, objectives and the targets set. Now, as we reach the
end of the first year, it is time to review the Corporate Plan.
The review of the Corporate Plan will -
z determine whether the objectives and actions are in line with

the required strategic direction;
z re-emphasize actions and activities;
z streamline the progress monitoring procedure; and
z incorporate necessary amendments to the Corporate Plan and

finalize Action Plans for 2008 (with the active participation of
the managerial staff and other stakeholders).
It is planned to hold a workshop in February 2008 for the

above purpose.

PROGRESS TOWARDS STATED GOALS
Goal Key Objectives Target End Achievement

2007 End 2007
1. Increase water supply and 1.1 Pipe-borne water supply coverage 32.0% 32.0%
sanitation coverage 1.2 Piped sewerage coverage 2.5% 2.4%
1.3 Access to safe drinking water supply coverage 76.4% 77%*
1.4 Total sanitation coverage 83.2%*
2. Improve operational efficiency 2.1 NRW (island-wide) 33.0% 33.09%

2.2 Total staff for 1,000 connections 8.3 8.2
2.3 Expenditure on power consumption 23.0% 22.67%
2.4 Maintenance expenses 7.5% 5.11%
2.5 Establishment expenses 10.5% 9.5%
3. Achieve customer satisfaction 3.1 Public awareness programmes to be

carried out (schools/other) 20 Nos. 12 Nos.
3.2 Complaints unresolved 10% 7.3%
4. Increase commercial viability 4.1 % of estimated bills to total number of bills 10% 12%
4.2 Collection efficiency 100% 100%
4.3 Accounts receivable from -
(a) domestic and commercial institutions 60 days 60 days
(b) Government institutions 65 days 65 days
5. Ensure greater accountability Initiatives were taken to develop a whole range of

and transparency management and business tools on human
resource development, management information
system and business plan.
6. Promote Institutional Development 6.1 In-house training 150 113

6.2 In-country external training 240 258
6.3 Overseas training 75 68
7. Provide facilities and service 7.1 Rural water supply by the NWSDB 4.5% 4.5%
support to rural and (managed by CBOs)
marginalized communities
* Estimated as 83.1% for water supply and 96.7% for sanitation from a sample survey carried out during 2006-2007 by the Department of Census and
Statistics except for Jaffna, Kilinochchi, Mullaitivu, Mannar and Vavuniya Districts.

Corporate Plan 2007-2011
Our Key Players
Board of Directors
01 Chairman
02 Vice Chairman
03 Vice Chairman
04 Working Director
05 Working Director
06 Board Member
07 Board Member
08 Board Member
09 Board Member
10 Board Member
11 Board Member
Secretary to the Board
Senior Management
12 General Manager
13 Additional General Managers

Deputy General
14 Managers of Divisions
Deputy General Managers
15 of Provinces
Deputy General Manager &
16 Project Director

BOARD OF DIRECTORS SENIOR MANAGEMENT
01. Eng. S. C. Amarasinghe 12. GENERAL MANAGER
B.Sc. Eng., DFip. Business Mgt., C.Eng., FIEE (Lond), FIE (SL) Eng. M. Wickramage - up to 16.05.2007
B.Sc. Eng. Hons., MIE (SL), C.Eng., MICE, DIC, M.Sc. (Lond.)
02. Eng. S. K. S. H. K. Suriyaarachchi - up to 16.04.2007

Eng. K. L. L. Premanath - w.e.f. 17.05.2007
B.Sc. Eng., C.Eng., MIE (SL)
B.Sc. Eng. (Hon.), DSE (Netherlands), M.Eng.
(Const. Management), C.Eng., FIE (SL)
03. Dr. A. Uthumalebbe - w.e.f. 18.04.2007
DIMS (Cey.), DFC (USA)
13. ADDITIONAL GENERAL MANAGERS
Eng. S. A. S. De Silva (Water Supply Projects)
04. Mr. A. L. W. Abeygunasekara - up to 16.04.2007
B.Sc. (Eng.), DSE (Delft.) DBFA (ICASL), FIE (SL),
MIRTE (Lond.), C.Eng.
05. Eng. M. S. Nazeer - w.e.f. 18.04.2007
B.Sc. Eng. (SL), M.Sc. Eng. (UK)
Eng. A. H. C. Silva (Southern/Eastern)
B.Sc. Eng. (Hon.), P.G. Dip. S.E. (Delft.),
06. Mr. H. P. C. Herath P.G. Dip. Const. Pro. Mgt., M.Sc. (Delft.),
B.Sc. (Economics), MBA (Colombo) FIE (SL), MICE (Lond.), C.Eng.
Secretary, Ministry of Local Government & Provincial Councils
Eng. H. G. Thilakaratne (Policy & Planning)
07. Mr. K. W. D. U. Dahanayaka - up to 02.02.2007 B.Sc. Eng. (Hon.), MBA, MIE (SL), C.Eng., MIM
08. Dr. C. K. Shanmugarajah Eng. S. K. Wijetunga (Western)

MBBS, DFM B.Sc. (Eng.), C.Eng., MIE (SL),
Director (Environmental Health, Occupational Health & P.G. Dip. in Sanitary Eng. (Delft.)
Food Safety), Ministry of Healthcare & Nutrition
Eng. B. W. R. Balasuriya (Northern/Central)
B.Sc. Eng. (Hon.), M.Sc. (UK), C.Eng., MIE (SL)
09. Mr. H. A. Amarasena
Attorney-at-Law
Eng. G. A. Kumararathna (Sewerage)
B.Sc. Eng. (Hon.), M.Sc. (UK), C.Eng., FIE (SL),
10. Mr. D. Widanagamachchi
MICE (Lond.), MIWEM (Lond.)
B.Sc. (Business Admin.) Sri J.
Pg. Diploma in Public Admin, PIM.S.J.
Eng. (Mrs.) G. S. Munasinghe
Director General (Department of State Accounts),
(Corporate Services)
Ministry of Finance & Planning
B.Sc. Hon. (Civil Eng.), Dip. in Sanit. Eng.,
Dip. in Bus. & Fin. Admin., FIE (SL), MICE (Lond.)
11. Dr. (Mrs.) Damitha de Zoysa - w.e.f. 26.10.2007
B.A. Hons. (Economics), Peradeniya
14. DEPUTY GENERAL MANAGERS OF DIVISIONS
M.Sc. (Agricultural Development Economics) ANU (Australia)
Eng. D. S. D. Jayasiriwardana (Planning and Designs)
M.A. (Economics) OSU, USA,
Ph.D. (Agricultural Economics) OSU, USA B.Sc. (Eng.) Hons., C.Eng., FIE (SL),
Director General (Department of Development Finance), M.P.H. (Univ. of Hawaii)
Ministry of Finance & Planning

Eng. K. T. Karunadasa (Information Technology)
B.Sc. (Eng.), C.Eng., MIE (SL), P.G. Dip. in Hydrology
SECRETARY TO THE BOARD (Delft.), P.G. Dip. in Computer Technology,
Mr. K. K. Chandrasiri MS Certified Professional, M.Sc. (IT)
B.Sc. (Hons.) Business Administration
PGD (Foreign Affairs), MIM (SL) Eng. A. W. Gunasekara (Commercial)
B.Sc. Eng. (Hon.), M.Eng., C.Eng., MICE (Lond.), MBA
The Board met on 17 occasions during the year 2007.

Our Key Players
Eng. K. R. Dewasurendra Eng. D. U. Sumanasekara
(Project Co-ordination) (North & North Central)
B.Sc. Eng. (Hon.), FIE, C.Eng., B.Sc. Eng. (Hons.), M.Sc. (Netherlands), C.Eng., FIE (SL)
P.G. Dip. (Sanitary Eng. - Delft.)
Eng. (Mrs.) K. T. P. Fernando (North Western)
Eng. G. K. Srimal (Logistics) B.Sc. Eng. (Hons.), MIE (SL), C.Eng.,
M.Sc. Mech. Eng. (USSR), M.E. Hyd. (India), M.Sc. in Water & Waste Engineering in UK
C.Eng., MIE (SL), Exe. Dip. in Bus. Admin. (Colombo),
Dip. in HRM Eng. J. R. B. Nadurana (Eastern)
B.Sc. Eng. (Hons.), P. G. Dip. in Environmental Science
Mr. D. Thotawatte (Finance) & Technology (Delft.), MIE (SL), C.Eng.
B.Com. (Sp.), ACA.
Eng. (Mrs.) C. J. D. Perera (Southern)
Eng. D. N. J. Ferdinando (Development) B.Sc. Eng. (Hons.), MIE (SL), Dip. Sanitary Eng.
B.Sc. Eng. (Hon.), M.Eng., FIE (SL), MCIWEM (UK), (Netherlands), Dip. Eng., C.Eng. (SL)
MICE (Con.)
Eng. N. M. S. Kalinga (Sabaragamuwa)
Eng. R. S. C. George (Corporate Planning) B.Sc. Eng. (Hons.), MIE (SL), C.Eng.,
B.Sc. (Eng.) Hons., C.Eng., MIE (SL), Dip. Sanitary Eng. (Netherlands)
M.Sc. (Eng.), FRG, MICE
Eng. M. A. M. S. L. Attanayake (Central)
Mr. H. Ariyasena (Personnel & Administration) B.Sc. (Eng.), C.Eng., MIE (SL), P. G. Dip. (Land & Water),
B.Sc. (Business Administration) Sp., MBA
Dip. in Personnel Management
16. DEPUTY GENERAL MANAGER &
Mr. W. A. J. Weerasinghe PROJECT DIRECTOR
(Acting - Internal Audit) Eng. P. R. L. Senevirathne
(PD - WWDP - RM & JE)
15. DEPUTY GENERAL MANAGERS OF PROVINCES B.Sc. (Eng.), C.Eng., MIE (SL), Dip. S.E. (Delft. -
Eng. (Mrs.) P. N. S. Yapa (Western - Central) Netherlands)
B.Sc. (Eng.), MIE (SL), C.Eng., M.Sc. (Struct. E.), UK
Eng. (Mrs.) M. K. Bandara (Western - North)

B.Sc. Eng. (Hon.), MIE (SL), M.Eng. (Public Health Eng.)
University of New Zealand & Australia
Eng. (Mrs.) T. P. Lamabadusuriya

(Western - South)
B.Sc. Eng., FIE (SL), M.Sc. in Water & Waste Eng. (UK),
C.Eng.

Our Key Players
DE-CENTRALIZED ADMINISTRATION

Our Key Players
What Legacy Do
we Pass Down?...
A Tap in Disrepair? Water Down the Drain? It is a fact

that water isn’t as freely available as it was a while back.
We need to save every drop... use every drop well... so
that future generations may have more than a drop!
Water is a Precious Resource. Let’s Save It!

Our Performance
‘‘ Service levels to
existing consumers
During 2007, the NWSDB focused on its new corporate action
plans for the year, based on the Corporate Plan for 2007-2011.
Quarterly progress was monitored and presented to the Board of
Directors by the respective managers made accountable for the
were improved by seven goals set out in the plan.
commissioning several
32% of the population had been covered with piped drinking water
major and minor supplies by the end of the year, indicating that the newly-fixed
water supply projects target for pipe-borne water supply had been fully achieved.
in different parts of 89,497 service connections were provided during the year. Service
’’
the country levels to existing consumers were improved by commissioning several
major and minor water supply projects in different parts of the
country. The rehabilitation and reconstruction of tsunami-affected
water supply projects also contributed towards these improvements.
The NWSDB was actively engaged in institutional development

activities during 2007. Aspects of training, skills development,
improving IT literacy, maintaining a friendly and work-oriented
office environment and practising 5S principles were continued
under the Institutional Development Programme.
The finances of the NWSDB were carefully managed to meet

debt-service commitments on time. The facility to make
consumer payments through the internet was further publicized
and collection efficiency maintained at a very high level. Staff
recruitments were kept under control, while the ratio of staff per
thousand service connections was reduced to 8:20.
Non-revenue water (NRW) includes authorized but unbilled water

supply to tenement gardens and public sanitary facilities. The
NWSDB is compelled to continue this service, earlier provided by
the CMC within the City of Colombo. If authorized but unbilled
water supplies in Colombo City (estimated at 14% of the water
supplied) are excluded, unaccounted for NRW in Colombo City
would be 41.2%.
If the authorized but unbilled water supply in Colombo City is

excluded, NRW in Greater Colombo and nationwide would be
32.7% and 31.2% respectively.
GENERAL
There are 308 major, minor and small water supply schemes in
operation under the NWSDB’s purview. Out of these, 31 schemes
cover major cities and 277 schemes cover townships and villages.

32% of the total population is covered with pipe-borne
water, while 10% is covered with hand-pumped tube
wells. Community management is promoted with regard
to rural water supply schemes through community-based
organizations. Rainwater harvesting is considered an
acceptable option as a drinking water source.
2006 2007 Variation (%)
KEY STATISTICS: WATER SUPPLY

Piped Water Production (million cu.m.) 398 424 6.5
Deep Wells (Nos.) (a) Drilled 646 636 (1.5)
(b) Successful 516 513 (0.6)
Non-Revenue Water (%)
(a) Gr. Colombo 37.54 37.86 1.0
(b) Regions 29.88 26.611 (12.1)
(c) Island-wide 34.37 33.091 (3.7)
Domestic Connections (Nos.)
(a) Gr. Colombo 418,063 433,433 3.7
(b) Regions 473,949 543,122 14.6
Total Domestic Connections 892,012 976,555 9.5
Public Stand Posts (Nos.)
(a) Gr. Colombo 4,112 3,373 (18.0)
(b) Regions 4,034 3,626 (10.1)
Total Public Stand Posts 8,146 6,999 (14.1)
Non-Domestic Connections (Nos.)
(a) Gr. Colombo 37,759 38,903 3.0
(b) Regions 51,478 56,435 9.6
Total Non-Domestic Connections 89,237 95,338 6.8
Total No. of Service Connections 989,395 1,078,892 9.0
Average Household Monthly Consumption
(cu.m. per house connection)
(a) Gr. Colombo 18.28 18.99 3.9
(b) Regions 14.25 13.81 (3.1)
Average Household Billing per Month (Rs.)
(a) Gr. Colombo 402.12 418.66 4.1
(b) Regions 199.65 192.79 (3.4)
Total Recurrent Expenditure (Rs. million) 5,937 7,186 21.0
Development Expenditure (Rs. million) 17,1242 21,088 23.1
Total Revenue (Rs. million) 6,947 7,424 6.9
O & M Staff /1,000 Connections 6.68 6.41 (5.1)
Total Staff /1,000 Connections 8.75 8.20 (4.0)
Average O & M Cost of Water Production (Rs./cu.m.) 14.96 16.93 13.2
Collection Efficiency 0.98 1.00 2.0
KEY STATISTICS: SEWERAGE

Sewerage Connections in Dehiwala-Mt. Lavinia Sewerage System 1,694 1,900 12
Sewerage Connections in Kolonnawa Sewerage System 850 950 11.8
Sewerage Connections for Institutions 7 7 –

Sewerage Connections in Housing Schemes in Greater Colombo 2,290 2,290 –
Sewerage Connections in Housing Schemes Outside Greater Colombo 4,6313 4,631 –
Total No. of Connections Maintained
by Greater Colombo Sewerage Section 9,472 9,778 3.2
1
Though the consumption of the Panadura and Akkaraipattu Regions has been taken into consideration, their production figures have not been made
available. Hence, the overall NRW figure shown is lower than the actual figure.
2
This figure has been corrected to give total development expenditure, since only the foreign component was given in the previous report.
3
This figure has been corrected since it was erroneous in the previous report.

Our Performance
Summary of Operations
‘‘ The total quantity of

drinking water
WATER SUPPLY
DRINKING WATER PRODUCTION
The total quantity of drinking water produced in 2007 was 424
produced in 2007 was million cu.m. The trend during the last 10 years is given in the
’’
chart. The Greater Colombo water supply system claims the major
424 million cu.m. share of production through three centres at Ambatale, Labugama,
and Kalatuwawa, amounting to 57.5% of the total water produced
by the NWSDB. In the latter part of 2006 a fourth production
centre was introduced.

Cost of Production:
Breakdown of the cost of production (Rs. million) in
comparison with 2006 is shown below:
COMPARISON OF SERVICE CONNECTIONS

Province No. of Connections Region No. of Connections
Province Wise Region Wise
As at end As at end As at end As at end
December 2006 December 2007 December 2006 December 2007
Western - Central 291,328 309,047 Priority 2,243 2,572

Colombo City 113,209 116,642
TEC North 109,638 115,344
TEC South 66,238 74,489
Western - North 114,318 121,535 TNC 79,641 85,120
Gampaha 34,677 36,415
Western - South 127,435 136,790 TSC 88,965 81,542
Kalutara 38,470 37,284
Panadura – 17,964
Central 113,711 128,029 Kandy 113,711 128,029
North-Western 26,218 28,470 Kurunegala 26,218 28,470
North-Central 33,363 39,851 Anuradhapura 33,363 39,851
Sabaragamuwa 52,139 57,363 Ratnapura 52,139 57,363
Southern 137,469 153,549 Hambantota 45,633 51,849
Matara 49,158 53,902
Galle 42,678 47,798
Uva 39,662 44,178 Bandarawela 39,662 44,178
Northern 4,439 5,083 Jaffna 4,439 5,083
Eastern 49,313 54,997 Ampara 27,774 17,157
Trincomalee 21,539 23,986
Akkaraipattu – 13,854
Total 989,395 1,078,892 Total 989,395 1,078,892

BILLING STATISTICS
Description 2006 2007
Billing Target (Rs. million) 6,572 7,164
Actual Billing (Rs. million) 6,947 7,424
Collection Target (Rs. million) 7,256 7,933
Actual Collection (Rs. million) 6,816 7,418
QUANTITY OF WATER SOLD AND REVENUE BY CONSUMER CATEGORIES (2007)

Consumer Category Quantity Sold Revenue
cu.m. ’000s % Rs. million %
Direct billing (domestic, NWSDB quarters, Government quarters) 181,488 63.60 3,346 45.08
Schools 3,369 1.18 17 0.23
Tenement gardens 9,963 3.49 140 1.89
Public stand-post supply 5,603 1.96 47 0.63
Government institutions, NWSDB premises 30,274 10.61 1,477 19.90
Commercial and industrial 27,217 9.54 1,615 21.76
Tourist hotels 2,007 0.70 116 1.56
Shipping 172 0.06 50 0.67
Board of Investment 7,780 2.73 376 5.07
Religious premises 3,541 1.24 36 0.49
Subtotal 271.414 95.12 7,220 97.28
Bulk billing 10,298 3.61 114 1.54
Others4 3,626 1.27 88 1.19
Grand Total 285,338 100.00 7,422 100.00
4
All other billing categories have been grouped under ‘Others’. Setting-off rebates have also been included in this category.

SEWERAGE Sewerage Systems in some Housing Schemes and
Government Institutions
The Greater Colombo Sewerage Section is responsible for the
In addition to the above-mentioned major sewerage
operation and maintenance of the sewerage systems of -
schemes, the NWSDB is also responsible for the provision
z the Dehiwala-Mt. Lavinia Municipal Council area; of sewerage services at several large housing schemes built
by the National Housing Development Authority within
z the Kolonnawa Urban Council area; and
the Greater Colombo area, as well as some Government
z the sewerage pump-houses and pumping mains institutions outside the Colombo Municipal limits but
of some National Housing Development Authority within the Greater Colombo area.
(NHDA) housing schemes and several Government
institutions within the Greater Colombo area. (a) Housing Schemes
1. Soysapura Housing Scheme
There are about 180 staff attached to the Greater 2. Maligawatta Housing Scheme
Colombo Sewerage Section. The total operational and 3. Mattegoda Housing Scheme
management cost per annum amounts to Rs. 145 million. 4. Jayawadanagama Housing Scheme
Income from institutions is Rs. 93 million approximately. 5. Crow Island Housing Scheme
6. Maddumagewatta Housing Scheme
Dehiwala-Mt. Lavinia Sewerage Scheme 7. Stace Road Housing Scheme
(address: 480, Roxy Garden, Wellawatte)

(b) Government Institutions
This system, constructed between 1980 and 1987,
1. Presidential Secretariat
consists of two pumping stations and a 32 km long sewer
2. Speaker’s Residence
network. It has been designed to accommodate 5,000
3. Parliament (water and sewerage)
property connections. At present, the number of property
4. Sethsiripaya (water and sewerage)
connections stands at about 1,900.
5. Isurupaya (water and sewerage)
6. Jayawadanagama Hospital
Kolonnawa Sewerage Scheme (address: 400, Avissawella
7. Maligawatta Hospital
Road, Wellampitiya)
This system, consisting of four pumping stations, was also
There are three waste water treatment plants, located at
constructed during 1980-1987. The sewer network is about Seethawaka, Soysapura and Mattegoda. Effluent collected
20 km long. The system is designed to accommodate about from all pumping stations in the Dehiwala-Mt. Lavinia and
3,900 property connections. At present, about 950 property Kolonnawa sewerage schemes is disposed of via two sea
connections exist. outfalls, one at Wellawatte and at the other at Mutwal.

The Tragedy of
Pollution...
Our goal could well be to make sights such as this a

rarity... After all, we are in the business of supplying clean
water... and keeping drainage routes separate altogether.

Water is a Precious Resource. Let’s Save2007
Annual Report It! 21
Water Supply
‘‘ The total value of

water supply works
GENERAL
PLANNING AND DESIGN SECTION
Project reports, identification reports, pre-feasibility reports and
undertaken by the feasibility reports were prepared, and design, final drawings and
documentation works carried out for augmenting or rehabilitating
P & D Section in existing works as well as for new works. A report on the progress
2007 amounted to of sewerage works of the Planning and Design (P & D) Section is
included under the general section on sewerage.
’’
Rs. 3,395 million
The total value of water supply works undertaken by the P & D
Section in 2007 amounted to Rs. 3,395 million. These include works
carried out under capital funds, rechargeable projects and relevant
proportions of the values of feasibility studies and design reviews of
foreign-funded projects. The approximate population expected to
be covered in these projects amounts to 1,187,000.
The work outputs in different sections are as follows. Details of

water supply schemes are given in the following pages under
different headings depending on their funding arrangement and
states of progress.
Subsection/Region No. of Water Supply

Schemes Handled in 2007
Colombo Metropolitan Region 7

Southern and Uva 17
Central and North-East 20
Documentation and Quantity Surveying

The Documentation and Quantity Surveying Section is
headed by the Assistant General Manager (Documentation).
This section comprises of two subsections, Documentation and
Quantity Surveying. These are headed by the Chief Engineer
(Documentation) and the Chief Quantity Surveyor respectively.
Documentation (Subsection)
This subsection comprises of a Chief Engineer, Engineer, two
Engineering Assistants, a Stenotypist and Office Labourer. Its
function is to prepare and regularly update tender documents for
contracts to be carried out by the NWSDB. In 2007, this subsection
updated all standard tender documents based on Tender Board
decisions and Government circulars and prepared new tender
documents for the supply and laying of pipes. It also prepared civil
construction documents in a format compatible with ICTAD standard
bidding documents for different financial ranges. Tender documents
for the supply of aluminium sulphate and lime were drafted based
according to NPA guidelines. A standard tender document for water
meters was prepared and Tender Board approval was obtained.

Through co-ordination with the Standard Tender prepared by the RSCs were checked, and site inspections
Document Revision Committee, necessary approvals for carried out to obtain details for these Variation Orders.
the revision were obtained.
Drawing Office
Quantity Surveying (Subsection) The Drawing Office plays a vital role in the Planning and
This section comprises of a Chief Quantity Surveyor, three Design Section, supplying drawings for the detail designs and
Quantity Surveyors, two Assistant Quantity Surveyors, a feasibility studies carried out for water supply and sewerage
Quantity Surveying Assistant, Engineering Assistant and schemes. In 2007, the office completed 2,257 drawings.
Office Labourer.
The Plan Printing Section plays a major role in respect of the
During the year under review, this subsection completed P & D Section and outside sections, providing copies of plans
54 Bills of Quantity (BOQs) for the supply and laying of whenever required. In 2007, the section printed 6,581 prints
pipes, ten BOQs for water supply retaining structures, 14 for the P & D Section and 691 prints for other sections.
BOQs for sewage treatment plants and 14 BOQs for office
buildings. It also rated 82 BOQs. Updating of the Water Surveying Section
Board Rate Book for 2007 was undertaken at the beginning 41 sites were surveyed during the year: in all, a total of
of the year and again at the end of the year for 2008. 348.8 km of longitudinal surveys and 36 site surveys were
New prices were obtained from various suppliers to update undertaken. The work included 174 longitudinal-survey
the rate book. Extra Work Orders and Variation Orders days and forty site-survey days.
MAJOR WATER SUPPLY PROJECT ACCOMPLISHMENTS

LOCATION MAP OF FOREIGN-FUNDED PROJECTS UNDER CONSTRUCTION/AUGMENTATION DURING 2007

Water Supply
PROJECTS UNDERTAKEN WITH ASIAN DEVELOPMENT Sustainability: A workshop on the sustainability of
BANK ASSISTANCE rural water supply and sanitation activities was held on
1. Third Water Supply and Sanitation Sector Project 9th August 2007.
Rural Water Supply and Sanitation
Water supply and sanitation activities in rural villages and Project Completion: A project completion workshop was
small towns in the Districts of Anuradhapura, Kalutara, held on 14th December with representative participation
Kegalle, Hambantota, Puttalam and Moneragala were by all stakeholders.
continued utilizing the participatory and demand-
responsive approach. Urban Water Supply Schemes
Under this component of the ADB project, six urban water
The major activities completed by the year 2007 were the
supply schemes were constructed in the Kalutara, Kegalle,
rural water supply programme and the institutional water
Puttalam, Anuradhapura, Hambantota and Moneragala
supply and sanitation programme.
Districts. The Kalutara scheme was commissioned in 2005,
while the others were commissioned in 2007.
RURAL WATER SUPPLY: COMPLETED PROJECTS
Cumulative 2007
URBAN WATER SUPPLY SCHEMES COMPLETED
District Scheme Estimated
886 village sub-projects 45 village sub-projects
Population Served
46 small town projects 12 small town projects
Puttalam Kakkapalliya 37,000
Kegalle Kegalle 75,000
Hambantota Ranna 58,000
Moneragala Wellawaya 48,800
Additionally, the Kekirawa water supply scheme had

reached 85% completion by the end of the year.
Anuradhapura Group Town Water Supply Project (AGTWP)

The main components of the AGTWP were commissioned
in 2005. Four small towns under the programme were
commissioned in 2007. Also in 2007, an automatic system
Rain Water Harvesting Tank provided under was introduced to operate the pumps.
Hambantota Rural Water Supply Scheme
2. Secondary Towns and Rural Community-Based

Water Supply and Sanitation Project
(ADB Fourth Project)
The objective of the project is to provide safe water to
829,000 people and sanitation facilities to 171,500. To
meet the revised cost estimate of US$ 175.2 million, two
supplementary loans (2276 SRI SF and 2275 SRI) were
negotiated with the ADB. These loans became effective
during the year under review.
Kakkapalliya Water Treatment Plant
Under the institutional water supply programme,

210 institutions have been covered.
Under the sanitation programme, 80,232 latrine units

were completed.
Completed small scale water supply schemes are

maintained by CBOs. District water and sanitation units
are being established at NWSDB’s district offices to
Hambantota Pipe Laying
provide back-up support.

Water Supply
PROJECT BENEFICIARIES z Augmentation of existing water-treatment plant
Sub-Project Population to be Served (2025)
Water Sanitation
z Treated-water transmission main (21 km)
z Elevated towers (3 Nos.)
Batticaloa
Urban 270,000 10,000 z Distribution system (141 km)
Rural 3,500 Urban sanitation for 500 families
Muttur
Urban 52,000 10,000
Hambantota
Urban 100,000 7,500
Polonnaruwa
Urban 85,000 2,500
Rural 161,000 69,000
Anuradhapura
Rural 161,000 69,000
The major components of this project include:

Completed Rain Water Harvesting Tank at Anuradhapura
Hambantota
Augmentation of the existing water supply system Muttur
z Salinity barrier at Ambalantota across Walawe Ganga New water supply system
z Water intake (31,500 cu.m.) adjacent to existing water- z Water intake (20,000 cu.m.) on right bank of Mahaweli Ganga
treatment plant (15,000 cu.m.) at Neelapola
z Treated-water transmission system (54 km) z Water-treatment plant (8,500 cu.m.) at Pachchanoor
z Elevated towers (6 Nos.) z Treated water transmission (9 km)
z Distribution system (148 km) z Elevated towers (2 Nos.)
z Distribution system (127 km)
Batticaloa
New urban water supply system PROJECT BENEFITS (RURAL COMPONENT)
z Raising of the bund of Unnichchai Dam by 1.5 m District Type of Facility Areas Covered
z Water intake (80,000 cu.m.) at Unnichchai Reservoir Anuradhapura - Water Supply 117 GNDs
- Sanitation Rambewa, Mihintale,
z Water-treatment plant (40,000 cu.m.) at Vavunathivu
(14,000 latrines) Ipalogama, Palaga in Galnewa,
z Treated-water transmission system (37 km) Thalawa, Nuwaragampalatha
z Elevated towers (7 Nos.) (East) and Rajanganaya PSs
z Distribution systems (261 km) Polonnaruwa - Water Supply 92 GNDs in Manampitiya,
Sewerage system for Batticaloa Hospital and Prison - Sanitation Aralaganwila, Pansalgodelle,
Urban sanitation for 2,000 families (14,000 latrines) Medirigiriya (New Town) &
Medirigiriya (Old Town),
Drainage system (3.5 km) to Kattankudy and
Hingurakgoda, Alahera -
Batticaloa towns
Bakamoona and
Polonnaruwa Thamankaduwa
New water supply system Batticaloa - Water Supply Manmunai West in

z Intake (60,000 cu.m.) from Mahaweli River at - Sanitation Unnichchai PS
Manampitiya (800 latrines)
z Water-treatment plant of 13,500 cu.m. capacity

Water Supply
Other components of this project are: 3. ADB-Assisted Tsunami-Affected Areas
Rebuilding Project
z a national public-awareness and education campaign
on the need for a water tariff, demand management, This project is to supply drinking water for tsunami-
conservation of water, hygiene and health education affected areas in the Batticaloa, Hambantota and Muttur
related to water and sanitation; Districts. The project target includes providing additional
temporary or permanent distribution- and transmission-
z awareness and education of CBOs on conservation of system and headworks improvements to existing schemes.
water, hygiene and health education related to water The permanent distribution extensions are to be provided
and sanitation (for rural component); and with community-based water supply and individual
z training and capacity-building of key water-sector sanitation facilities under the ongoing Secondary Towns
institutions. Water Supply and Sanitation Project.
Progress on Urban Water Components of the Project Hambantota
Ten major contracts have been awarded out of a total of Improvements were effected to the Ranna, Kirinda,
16, and construction of all works under these 10 contracts Hambantota, Bundala and Wakkamulla water supply
is now under way. schemes, with headworks improvements, new transmission
system and extended distribution systems.
Progress on Rural Water Supply Components
Batticaloa
These are given in the accompanying table.
The Koralai Pattu North, Manmunai North, Manjanthuduwai,
Arayampathu, Kalawanchikudi and Kallar water supply
schemes were identified for improvements or new schemes,
as required, and tenders have now been awarded.
Muttur
Fifteen shallow wells have been constructed. Construction
of rainwater harvesting tanks (32 in all) was 20%
complete by year’s end.
The overall value of work done during the year was

Rs. 87.4 million.
Pump House Galwanguwa - Ipalogama

PROJECTS UNDERTAKEN WITH JBIC ASSISTANCE
1. Greater Kandy Water Supply Project Phase I and II
RURAL COMPONENT PROGRESS
As a measure to solve the drinking water shortage in the
Greater Kandy Area, the Greater Kandy Water Supply
Point Sources Pipe Scheme (Small)
Project was proposed. It is to be implemented in three
Anuradhapura 90% completed 68% completed phases, funded by a special Yen loan from the JBIC.
Polonnaruwa 85% completed 85% completed
Batticaloa 65% completed None Phase I, Stage I
Phase I of the project was successfully implemented on
Progress on Rural Sanitation Components a priority basis under Stage I to provide water supply
z First batch: 95% complete in Anuradhapura facilities to Pathadumbara, Kandy Four Gravets, Akurana,
and Polonnaruwa Districts; 25% complete in Pujapitiya and Harispattuwa Pradeshiya Sabha areas
Batticaloa District. in order to resolve the acute water shortage in these
areas. The works under this phase serve 381,000 people
z Second batch: Commenced in June. In progress.
(including the floating population of Kandy City, estimated
at 100,000). Construction commenced in November 2004
The project had achieved physical progress status of
and was completed in December 2006.
21% and financial progress of 19.4%. Completion of the
project is expected by 2010.

Water Supply
Phase I, Stage II
All identified works under Phase I could not be
implemented in Stage I due to a scarcity of funds. All such
work, including improvements to the treatment plant and
distribution network, has been included under Stage II.
The object of this stage is to improve the service level for

194,400 people in the Greater Kandy Area, which includes
the Kandy Municipal Council (KMC) area, Ampitiya,
Rajapihilla, Kulugammana, Nugawela, Heerassagala,
Meekanuwa, Mullepihilla, Elhena, Gohagoda,
Kondadeniya and Thelambugahawatta. Total cost of the Ambatale Pump House
stage is Rs. 4,200 million and it is expected that work will
be completed in 2012. The consultancy contract for design The total cost of Stage I of the project is Rs. 5,724 million.
review and construction supervision has been awarded Construction activities commenced in 2002 and Stage I
and reviewing work is now in progress. work, comprising a treated-water transmission system
from Ambatale to Ekala and headworks at Ambatale,
Church Hill, Ragama, Welisara, Kandana and Ja-Ela,
together with limited distribution networks in these
areas, was completed in 2007. Ten thousand connections
have been provided in the Ja-Ela, Kandana, Ragama and
Welisara areas.
Several of the Stage II works - construction of a tower and

reservoir at Mahara, a reservoir with yard piping at Ekala
and a transmission line from Welisara to the Muthurajawela
development area - have also been completed.
Intake of Greater Kandy WSP 3. Towns North of Colombo Water Supply Project,
Stage II
2. Towns North of Colombo Water Supply Project, Stage II of this project includes headworks and
Stage I distribution-network expansion at Mahara, Biyagama,
The Towns North of Colombo Water Supply Project is Ja-Ela, Kandana, Welisara, Ragama and Ekala - the
designed to extend water supply services to six towns in distribution systems omitted in the areas where
the northern part of Greater Colombo: Mahara, Ragama, implementation was under Stage I. Stage II works
Welisara, Kandana, Ja-Ela and Ekala. will contribute towards a total consumer coverage of
approximately 200,000. The total cost of the project is
Rs. 6,490 million. It commenced on 27th November 2007.
The consultancy contract for design review and

construction supervision on this stage has been awarded
and reviewing work is now in progress.
4. Kalu Ganga Water Supply Project: Phase I, Stage I

The objective of this project is to develop the Kalu Ganga
as a new water source to meet increasing demand in
the southern Greater Colombo area, which includes
Moratuwa, Keselwatta, Panadura, Bandaragama and
Mahara Tower, Reservoir and Pump House Horana. Stage I of the project, now under implementation,
will provide improved water services to a population of
400,000 and provide 20,000 new service connections.

Water Supply
of a soft loan to implement Stage II of the Greater Galle
Water Supply Project. The major component of this
project is to lay 390 km of distribution mains. The physical
work commenced in December 2005. The revised date of
completion is 29th August 2008.
160,000 people will benefit from improved or entirely new

water supply facilities when this project is commissioned.
Owing to funding restrictions, only 261 km of pipelines
will be laid under Phase I of Stage II. These will be laid
in the Akmeemana, Bope Poddala, Hikkaduwa and
Overhead Tower - Plant Water System Habaraduwa Pradeshiya Sabha areas at a cost of
Rs. 2,711 million. Arrangements have been made to lay
the remainder of the distribution system with assistance
from the same funding agency under Stage II, Phase II for
a total cost of Rs. 1,032 million. Physical progress as at
December 2007 was 70%.
PROJECTS UNDERTAKEN WITH DANIDA ASSISTANCE

1. DANIDA Tsunami Project
The Government of Denmark provided total grant
assistance worth DK 50 million (Rs. 875 million) in terms
of tsunami-related programme assistance in 2005. The
new Siribopura-Hambantota water supply scheme,
Flocculation and Sedimentation Tanks
expansion of the Kalmunai-Kallar-Ampara water supply
scheme and augmentation of the Kalutara water supply
Detailed designs were completed in September 2000. Stage
scheme were undertaken under this programme. In total,
I of this work will produce a total quantity of 60,000 cu.m./
the three projects have provided connections to 3,200
day of water from the treatment plant and make it available
tsunami-rehabilitation housing units.
in the identified areas via transmission mains, reservoirs and
towers. The construction of the intake, treatment plant,
All these projects were implemented over a period of two
pumping main and main reservoir were completed and
years and successfully completed in May 2007.
commissioned in October 2006. Finishing works continued
thereafter. The total cost of the project is Rs. 12,000 million. Also under the project, a rainwater-harvesting programme
Completion is planned for August 2008. covering 1,000 housing units was launched in the Ampara
District.
PROJECT UNDERTAKEN WITH KOREAN ASSISTANCE
Greater Galle Water Supply Project, Stage II 2. Nuwara Eliya District Group Water Supply
Project (Hatton, Ginigathhena, Maskeliya)
The Export Development Cooperation Financing Agency
This project is implemented under DANIDA mixed credit.
of Korea is providing the Government of Sri Lanka with
The contractor mobilized in December 2006 and the
US$ 14.8 million (equivalent Rs. 1,498 million) by way
project will be completed by May 2009.
Galle Water Treatment Plant Site Organizing at Nuwara Eliya

Water Supply
The total estimated cost of the project is Rs. 3,310 million. New technologies, such as the use of high-density
It is expected to provide water supply facilities to 96,000 polyethylene pipes for water transmission, full automation
households in Ginigathhena, Rikillagaskada-Hanguranketha, of the headworks using SCADA systems and provision
Maskeliya, Walapane-Nildandahinna, Ragala and of 19,000 service connections, with pipe laid so that
Hatton-Dickoya. consumers may receive the intended services immediately
after the scheme is commissioned are, together with
Progress as at the end of 2007 was 60, 55, 20 and 20%
reduction of water wastage, key features of this project.
respectively on the first four of the above schemes. Work
on the last two schemes commenced in February 2008.
The project commenced in June 2005. By September
2007, progress figures of 36% (physical) and 34%
3. Towns South of Kandy Water Supply Project
(financial) had been recorded. This vital project will be
This project will address the water requirements of
completed by June 2009.
350,000 people by 2025. It covers the Udunuwara and
Yatinuwara DS Divisions and parts of Gangawata Korale,
PROJECTS UNDERTAKEN WITH AUSTRIAN ASSISTANCE
Udapalatha and Ganga Ihala. Towns served by the
1. Implementation of the Hambantota, Ambalantota,
project include Peradeniya, Pilimatalawa, Kadugannawa,
Weligama, Kataragama Water Supply Projects and
Murutalawa, Danture and Gampola, Ulapne and Badulla-Bandarawela Integrated Feasibility Studies
Welamboda. The project cost of Rs. 7,250 million is The main objective of this Austrian-funded project is the
funded jointly by the Governments of Denmark and provision of 28,000 new connections and service-level
Sri Lanka. The project has two main components. improvements to a population of 150,000 presently served
by water supply in Hambantota, Ambalantota, Weligama
The service facilities for the area extending from and Kataragama.
Peradeniya to Kadugannawa consist of a weir across the
Mahaweli River extracting 32,000 cu.m. of water and a Major activities are the construction of new treatment
treatment plant located at Meewatura, adjacent to the plants at Weligama, Ambalantota and Kataragama and
weir. Treated-water will be distributed using 13 new and studies on augmentation of the Badulla and Bandarawela
4 existing ground reservoirs in the service area. Water will water supply schemes. The project will be completed in
be transmitted to these reservoirs by means of a 40-km March 2008. The total cost estimate on the project is
transmission network. The water will be distributed to Rs. 1,820 million. It was 98% complete by the end of
consumers via a 300-km distribution network of pipes. 2007, with all three treatment plants commissioned.
Establishment of Coffer Dam Weligama Water Treatment Plant
Service facilities for the Gampola, Ulapane and Welamboda 2. Kirindi Oya Water Supply Project
areas consist of three water sources. The intake at Paradeka The service area under this project includes Lunugamvehera,
will be augmented to a capacity of 6,000 cu.m.; new Weeravila, Mattala, Dewramvehera, Beralihela and the
treatment facilities will be constructed at Atabage; 8,000 proposed airport area in Weeravila. The total estimated cost
cu.m. will be extracted from the Ulapane Oya and treated; is Rs. 1,707 million; on completion, about 83,000 people
and at Elpitiya, 7,000 cu.m. will be extracted and treated. will benefit. The project is funded by the Government of
A water-transmission network of 20 km, a water tower, Austria. The whole contract was awarded and the contract
three new reservoirs and three existing reservoirs will serve agreement signed during the year under review.
consumers via a 100 km pipe network.

Water Supply
PROJECT UNDERTAKEN WITH FRENCH ASSISTANCE contribution from the Government of Germany is 14.06
Greater Trincomalee Integrated Water Supply Project million Euros, while the Government of Sri Lanka contributes
Following the damage caused by the 2004 tsunami, in Rs. 845 million and the BOI a further Rs. 141 million. In all,
January 2005 a French grant was provided to carry out a about 87,000 consumers will benefit from this project.
feasibility study for augmenting water supplies to the Greater
Trincomalee Area. The study was completed in April 2005. The Nawalapitiya sub-project was ceremonially
A further requirement at this time was to serve two post- commissioned in December 2007, while the Koggala
tsunami settlements on the coastal area near Trincomalee and and Ampara sub-projects are scheduled to be completed
two isolated locations in Pulmoddai and Echchilampattu. Total within the first quarter of 2008. Overall physical progress
funding for this programme was provided under a French as at 31 December 2007 was 93%.
protocol amounting to 20.3 million Euros.
Ampara: The project area covers the Ampara Urban
Under French RPE funding, the following works were Council area. The existing water supply is substantially
undertaken: a new intake from the Mahaweli River at augmented under the new project. The estimated total
Kantalai, augmentation of the existing treatment plant population served is 28,000.
and improvements to the existing intake, etc., at a cost
of 10 million Euros. Part of the pipe supply, together with
distribution improvements and the two isolated projects
for Pulmoddai and Echchilampattu, were provided under
French AFD funding to the value of 10.3 million Euros.
The objective of this project is to increase the production

capacity of the Kantalai water-treatment plant to 12 MGD
and increase the service level in the entire Trincomalee
integrated water supply scheme.
Project components include

Ampara Clear Water Tank
z construction of new intake and pump-house;
z laying a new raw-water main; The main components of the project are -
z laying a new transmission main; z installation of intake pumps;

z distribution system improvements; z laying a 350 mm-diameter DI raw water main;
z rehabilitation and augmentation of Kantalai WTP and z construction of a 6,500 cu.m./day-capacity treatment
service reservoirs; plant;
z introduction of a SCADA system; and z construction of a 1000 cu.m.-capacity ground reservoir;
z construction of new WSSs at Pulmoddai and z construction of a high-lift pump-house and installation
Echchilampattu. of high-lift pumps;
z laying a clear-water transmission main;
A consultancy firm was appointed in 2006. At present,
z rehabilitation of two existing water towers;
procurement processes for works are ongoing. Physical
work has yet to be started. z extension of distribution system by another 15.5 km; and
z a leak elimination programme to reduce non-revenue
PROJECTS UNDERTAKEN WITH KfW ASSISTANCE water.
1. Augmentation of Ampara, Nawalapitiya and
Koggala Water Supply Schemes It is planned to extract water from Konduwatuwana tank.
Under this project, drinking-water facilities in the Ampara
and Nawalapitiya Urban Council areas and part of the Nawalapitiya: The project covers the Nawalapitiya UC
Habaraduwa Pradeshiya Sabha area (including the Koggala area. The quantity of water distributed by the existing
Export Processing Zone of the Board of Investment) will systems is not adequate for the township and the quality
be substantially improved. The project is financed by the of water distributed is also unreliable. The new water
Government of Germany through KfW Bank by means of supply project will address these issues holistically with
a soft loan, and also the Government of Sri Lanka. Total a comprehensive system-improvement programme. The
estimated project cost is equivalent to Rs. 2,662 million. The estimated total population served is 22,000.

Water Supply
2. Rehabilitation of Water Supply in Galle District
Owing to the damage caused by the 2004 tsunami,
immediate relief works including the supply of water
bowsers, water tanks, etc., were undertaken by the
Government of Germany under Stage I of this project.
As a follow-up to this, 14 km of DI transmission main
from Baddegama Treatment Plant to the storage reservoir
at Ambalangoda was supplied and laid. This work
commenced in June 2005 and was completed in December
2007. All works under Stage I, except the transmission
line, were completed in 2006. The pipeline was completed
Nawalapitiya Intake Dam by the end of 2007 and commissioned. A total of 60,000
persons enjoy improved or new water supply facilities as a
The main components of the project are - result. The total cost of this component is Rs. 710 million.
z construction of intake;
Furthermore, agreement has been reached with KfW
z construction of 4500 cu.m./day-capacity treatment plant;
Bank of Germany to augment the present capacity of the
z construction of 1000 cu.m.-capacity water tower;
Baddegama water-treatment plant from 18,000 cu.m./day
z construction of 1000 cu.m. and 450 cu.m.-capacity to 36,000 cu.m./day as Stage II of this project. By this,
ground reservoirs; 14,000 water supply consumers in the coastal areas
z pump-house; of Ambalangoda, Balapitiya, Piyagama and Galagoda
z laying of clear-water, gravity and pumping transmission will experience improved water supply. Design work is
mains; complete and all five major contracts have been awarded.
z distribution network of 33 km; and Contractors had just mobilized by the end of 2007. The
Stage II works are to be completed by the end of 2009.
z construction of office and quarters.
The total estimated cost of Stage II is Rs. 3,636 million.
Koggala: The project covers part of the Habaraduwa

Pradeshiya Sabha area, including the Koggala Export PROJECTS UNDERTAKEN WITH AUSTRALIAN
ASSISTANCE
Processing Zone, part of Habaraduwa Township, Koggala,
1. Integrated Water Supply Project for Eastern
Kathaluwa and Ahangama townships. The estimated total
Coastal Towns of the Ampara District, Stage II
population served is 37,000. The total water demand is
The aim of this project is to provide water supply facilities
7,800 cu.m./day. The treated water will be transmitted
along the eastern coastal parts of Ampara District, covering
from Halloluwagoda ground reservoir, which has been built
the Akkaraipattu, Addalaichenai, Oluvil-Palamunai, Ninthavur
as a part of Greater Galle Water Supply Project. The project
consists of 9.3 km of DI and PVC transmission mains and an and Maruthamunai townships. The project also supplies water
approximately 26 km-long distribution network. to Irakkamam, situated in between Ampara and Akkaraipattu.
Pressure Testing at Koggala Ampara Intake Bridge

Water Supply
The design population covered by the project is 370,000. PROJECT UNDERTAKEN WITH RED CROSS ASSISTANCE
Total project cost estimate is Rs. 10,472 million. The Tsunami Rehabilitation Project
foreign-aid portion of the project cost was funded by the IFRC, in association with the Sri Lanka Red Cross, signed a
Australian Government through EFIC/ANZ Bank. MoU with the Government to provide assistance for water
supply projects worth US$ 37 million. This includes water-
Project implementation commenced in December 2002 supply improvements in the Galle, Matara, Hambantota,
and water supply service to the entire project area Ampara and Jaffna Districts. Some of the major activities
was commissioned during the year under review. to be implemented are as follows:
Some remaining construction of buildings and other
1. water supply extensions to post-tsunami resettlement
miscellaneous works is scheduled for completion during
sites in the Galle and Matara Districts;
the first half of 2008.
2. distribution system improvements in Weligama WSS;
PROJECT UNDERTAKEN WITH UNICEF ASSISTANCE 3. new water supply scheme to Seenimodara area;
UNICEF Tsunami Project
4. water supply distribution improvements in the
After the tsunami disaster, UNICEF came forward with
Akkaraipattu and Oluvil area;
considerable assistance for the water sector. This included
much emergency assistance, which was very helpful. As 5. construction of new water supply schemes in the
immediate requirements were gradually met, the Fund Pottuwil and Nindavur area.
agreed to provide financial assistance worth about
US$ 25 million for various identified needs of the water The following activities were complete at the end of 2007:
sector. The key interventions are as follows: 1. Seenimodara and Moraketiyana water supply project
1. Augmentation of Tangalle urban WSS at a cost of in Hambantota District.
US$ 10 million. Work began in September 2006 and 2. School rainwater harvesting in Hambantota area.
will be completed by the end of February 2008.
3. Chlorination project in Hambantota water supply
2. Construction of a new WSS for Thirukkovil at a cost of scheme.
US$ 12 million. Construction activities started in October
2006 and will be completed in December 2008. Cumulative physical progress as at the end of 2007 was
27%. 24.5% physical progress was achieved in the course
3. A new WSS was designed for Mullaitivu town. of the year.
Although all planning and design activities have been
completed, tendering has not been possible due to the The following activity is still at the planning and design
prevailing situation in the area. stage: Pottuvil water supply scheme in Ampara District.
4. Water supply to 2,000 families resettled in new
settlements in the Kalutara District through nine The following activities are ongoing at present:
small-scale rural water supply systems. 1. extensions from main road to resettlement areas in
5. Preparation of water-safety plans on a pilot basis for and around Galle;
three selected schemes in the Southern Province. 2. meeting rural water supply requirements in the
Galle area;
PROJECT UNDERTAKEN WITH USAID ASSISTANCE
3. new transmission main from Wakwella to Beekka in
Pottuvil-Ulle Water Supply Scheme (Tsunami Site)
Galle water supply scheme;
The Pottuvil-Ulle WSS is co-funded by USAID and IFRC.
The total cost estimate is Rs. 1,400 million. This scheme 4. pipe-laying to resettlement areas, including Weligama-
will serve a population of 42,000 by 2025. The design of Midigama line and secondary pumping for the
all headworks is carried out by USAID, while design of Kaburugamuwa and Mirissa areas in Matara District;
the distribution system is by the NWSDB’s Planning and
5. Weligama area distribution system in Matara area;
Design Section. Intake and treatment plant works are under
construction. Design details of the distribution system have 6. distribution improvements to Kudawella area
been handed over to IFRC for tender procedures. (transmission main from Batigama to Naigala) in
Matara District;

Water Supply
7. supply and laying of 85 km of distribution pipes and cost estimate of the scheme is Rs. 180 million. It is
civil works in Akkaraipattu; expected to serve a population of 12,750 by the year
2025. Construction activities are in progress.
8. Samanthurai Treatment Plant in Ampara District.
2. Kinniya Water Supply Scheme

PROJECTS UNDERTAKEN WITH STAART ASSISTANCE Kinniya WSS is funded by GOSL/STAART at a tentative
1. Kalawanchikudi Water Supply Scheme estimated cost of Rs. 107 million. The population
Under STAART financial assistance, the Kalawanchikudi benefited by this project is about 40,000. Design work had
Water Supply Scheme was proposed to serve tsunami- been completed at the time of publication.
affected families in the Kalawanchikudi area. The tentative
GOSL FUNDED SMALL AND MEDIUM SCALE WATER SUPPLY PROJECTS

LOCATION MAP OF PROJECTS UNDER CONSTRUCTION/AUGMENTATION DURING 2007 FUNDED BY THE
GOVERNMENT OF SRI LANKA

Water Supply
GOSL FUNDING THROUGH SMALL-SCALE COMPLETED PROJECTS
INFRASTRUCTURE REHABILITATION AND
The following new projects and scheme rehabilitation
UPGRADING PROJECTS
projects were commissioned in the year under review.
Under the Capital Works Programme, 31 new water
supply projects and rehabilitation and augmentation on a Western Kirindiwela*
further 35 water supply schemes were carried out in 2007. Yakkala*
Udugampola
DISTRICT-WISE CAPITAL WORKS PROGRAMME 2007 Kosgama*
District Allocation No. of Beneficiaries Nittambuwa-Veyangoda

2007 Projects with Oruwala-Koratota
Rs. million Allocation
North Central and North Habarana
Ampara 93.0 3 45,000
Nachchiduwa
Anuradhapura 319.6 4 30,000
Lolugaswewa
Badulla 7.5 2 31,150
Colombo 246.4 4 105,900 North Western Kakkapalliya
Galle 40.0 2 11,300 East Nintavur, Irakkamam,
Gampaha 102.8 4 241,750 Akkaraipattu,
Hambantota 1.7 1 6,000 Muruthamunai,
Kalutara 49.7 2 30,000 Oluvil-Palamunai
Kandy 256.4 4 155,000
Southern Muruthawela
Kegalle 88.5 3 24,450
Makandura
Kurunegala 166.5 4 90,000
Ridiyagama
Mannar 7.0 2 15,000
Weligama
Matale 227.0 4 43,100
Matara 257.0 7 213,000 Sabaragamuwa and Uva Yatiyantota*
Moneragala 106.0 3 36,000 Udawalawa Treatment Plant*
Nuwara Eliya 13.7.0 1 10,500
Central Nawalapitiya
Polonnaruwa 183.7 5 55,000
Greater Kandy (Stage I)
Puttalam 10.0 1 2,500
Ratnapura 281.0 6 99,000 * Partly commissioned
Trincomalee 70.0 3 50,000
Inter Provincial 30.0 1 35,000
Total 2,625.0 66 1,329,650
There were eighteen projects without allocation

continuing from previous years, and nothing could be
done in 2007. 59% of the above allocation was utilized
during the course of the year.

Water Supply
DESCRIPTIONS OF GOSL FUNDED SMALL AND Supply and laying of PVC pipes for the Warana extension
MEDIUM SCALE WATER SUPPLY PROJECTS remain outstanding.
Akuressa Water Supply Scheme
Kirindiwela Water Supply Scheme
This new scheme intends to serve 15,000 people at a cost
of Rs. 145.6 million. A new treatment plant capable of supplying 2,750 cu.m./day
will be constructed at the existing plant site at Pugoda.
At present, a raw-water pumping main and a treated-water The project is funded by the NWSDB under the capital
pumping main have been almost completed and the budget and intends to serve a population of 8,000 at an
laying of the distribution main has also been completed. estimated cost of Rs. 198 million.
Construction of the water-treatment plant is in progress.
Having completed project components such as a
Muruthawela Water Supply Scheme 450 cu.m.-capacity water tower, OIC’s quarters, laying
30 km of PVC, DI and GI pipe works and gas chlorinators,
This scheme intends to serve 16,000 people at a cost of
the project is left with balance works such as the supply
Rs. 525 million.
and installation of low-lift pumps and construction of
the intake structure. Construction of the flocculator and
Project components such as treatment plant, elevated
channel is substantially complete.
tower, ground reservoir, pumping main, transmission
main and distribution systems for the Muruthawela,
Udugama Water Supply Scheme
Weeraketiya and Walasmulla areas have been completed.
By 2020, this water supply scheme will provide
Construction is ongoing on such remaining works as the
pipe-borne water to a population of about 8,500 in
culvert crossings and laying of the rider main.
Udugama town and suburbs. The design capacity of the
scheme is 1,200 cu.m./day. Tentative estimated cost is
Yakkala Water Supply Scheme
Rs. 118 million. It is now under construction.
The new treatment plant, which can supply 3,000 cu.m./day,
will be constructed to the benefit of about 14,000 people.
Dankotuwa Water Supply Scheme
The project is being financed by the capital budget and is
This project covers water supply to Dankotuwa,
constructed at a cost of Rs. 204 million.
Wennapuwa, Nattandiya and a small area of Mahawewa,
serving an estimated population of 25,000 by 2027. It is
Having completed the project components, such as
to be implemented in two phases.
a 3,000 cu.m.-capacity treatment plant, 1,000 cu.m.-
capacity water tower, sludge-drying beds and laying of
Phase I covers 55% of the Dankotuwa, Nattandiya and
the raw-water main, transmission main and distribution
Wennappuwa areas with a 43,000 cu.m./day-capacity
systems, as well as the construction of a chemical house,
full-treatment plant. Phase II covers part of Mahawewa
pump-houses and intake structure; and having supplied
and the remaining areas of Dankotuwa, Nattandiya and
and installed high- and low-lift pumps and treatment-
Wennappuwa with a 13,500 cu.m./day full-treatment plant.
plant equipment and constructed a settling tank, the
project is now progressing with balance works: the supply
Construction of the treatment plant and the laying of
and installation of a submersible pump for settling tank
pipes are in progress.
recycling, the laying of PVC pipes for extensions and the
installation of a mechanical flocculator.
Udugampola Water Supply Scheme
This scheme is designed to supply drinking water to the
Nittambuwa-Veyangoda Water Supply Scheme
Udugampola area by tapping borehole intakes located
Raw water taken from Attanagalu Oya at the existing
on the Pradeshiya Sabha premises. This scheme intends
intake will feed a new treatment plant to be constructed
to serve a population of 5,750 at a total estimated cost
to supply water to some 15,000 people in the Nittambuwa
of Rs. 43 million. Project components so far complete
and Kalagedihena areas at a cost of Rs. 210 million.
include boreholes and control rooms, water tower, gas
chlorinators, transmission mains and distribution systems.
Completed to date are the treatment plant, a water tower
Balance works are mainly related to the construction of the
of 450 cu.m.-capacity, office building, chemical house
office building, which is almost completed.
and pump-house, raw-water main, transmission main and
distribution system. High-lift and low-lift pumps have been Katunayake Water Supply Scheme
installed. Repairs to the existing intake and treatment plant
This scheme is to be implemented in two stages. In Stage I,
have also been completed, together with the supply and
1,000 cu.m./day will be supplied to the Katunayake Export
installation of air blowers, sludge pumps, chlorinators and
Processing Zone and 1,000 cu.m./day to the Gallewatta
mixing stirrers, a mechanical flocculator, settling tank and
distribution system to serve a population of 29,000 at an
sludge-drying beds.
estimated total cost of Rs. 166.98 million.
Water Supply
Stage II of this scheme will be executed at an estimated Serunuwara Water Supply Scheme
cost of Rs. 185 million. The cost of this scheme is Rs. 418 million. The population
benefited by it will number about 14,500 by 2026. Design
Having completed project components such as a works for the scheme are in progress, and pipe-laying is
400 cu.m./day treatment plant, raw-water pumping main now being undertaken.
and two water towers of 450 cu.m. and 1,350 cu.m.
capacity respectively, and undertaken the replacement of Ambagasdowa Water Supply Scheme
the old plant’s high-lift pumps and the installation of new
This scheme will provide pipe-borne water to a population
ones, the project is progressing with such balance works as
of about 17,812 in the Ambagasdowa town area and
the laying of the Gallewatta and Katunayake distribution
suburbs by 2024. The design capacity is 3,000 cu.m./day
systems and a pumping main to the Katunayake tower.
at a tentative estimated cost of Rs. 185 million. The scheme
is now under construction.
Avissawella Water Supply Scheme
The scope of the present project is an improvement of
Giriulla Water Supply Scheme
the existing water supply scheme to enhance its capacity
Construction of towers, supplying of pipes and laying of
to 6,000 cu.m./day. The tentative estimated cost for
pipelines is in progress.
the improvement is Rs. 75 million. Improvements for
the intake are under construction with some suggested
Chico Water Supply Scheme
modifications to enable completion of the work sooner.
This is a 3MGD plant previously owned by the Steel
Kosgama Water Supply Scheme Corporation. All tenders have been awarded and
This scheme was commissioned in 2005 with a temporary construction works are in progress. This is an urgent need
intake. Designs for a permanent intake are now being to complete the project as early as possible, as Chico Plant
produced by the P & D Section. Meanwhile, a supporting is to be commissioned in the second quarter of 2008. After
structure for the temporary intake is being executed by commissioning, the scheme is proposed to supply currently
the Workshop. A tender for the civil works involved is also unsupplied areas in Malwana, Dompe and Biyagama, as
being prepared by the P & D section. An intake structure well partly meeting demand from the Biyagama Export
constructed in the Kelani River opposite Kosgama will be Processing Zone. Additionally, Athurugiriya and Korathota
utilized for water supply to the Giridara area. These works are to be covered by surplus production from the scheme.
are being handed by P & D at present. Currently, the
Construction Section is running the treatment plant. Nivitigala Water Supply Scheme
This water supply scheme is a distribution expansion
Hanwella Water Supply Scheme using water utilized from a stream connected with
This is a distribution extension with water obtained from the Pradeshiya Sabha water supply. Works have been
Labugama-Kalatuwawa system. The works represent a completed and the scheme is to be handed over to the
single contract carried out by Transwater; of the 15 km to Provincial Office (Sabaragamuwa), which will implement
be laid, about 5 km has been completed. 5 km of laying connections and transfer works.
has to be carried out on the High Level Road, and the
Road Development Authority has insisted that NWSDB Pelmadulla Water Supply Scheme
meet the cost of subsequent road repairs. This has been This is an augmentation of the existing Pelmadulla WSS.
referred to P & D in order to prepare a tender document;
Old pipelines are to be abandoned and connections
the original scope of the contract to be handled by
transferred to new lines. This work, too, will be handed
Transwater has been altered accordingly.
over to the Provincial Office (Sabaragamuwa).
Jalthara Ranala Water Supply Scheme

Godakawela Water Supply Scheme
Jalthara Ranala WSS will benefit 20,400 families in the
This scheme belongs to the Godakawela Pradeshiya Sabha.
Kaduwela and Homagama DS divisions. The project has
The NWSDB Construction Section is involved in the laying
been implemented in two phases. Design work on Phase I
of a distribution/transmission pipeline. Other works,
is already complete. The estimated cost for Phases I and II
such as the treatment plant, intake and M & E works,
are Rs. 217.16 million and Rs. 1,513.00 million respectively.
are handled by the Provincial Office (Sabaragamuwa).
After completion, the scheme is to be managed by the
Mahawa-Nikaweratiya Integrated Water Supply Scheme
Godakawela Pradeshiya Sabha.
The total cost estimated for this scheme is Rs. 890 million.
It will serve an estimated population of 40,000 by 2025.
Construction is now in progress.

Water Supply
Yatiyanthota Water Supply Scheme NEW INITIATIVES TO BE PURSUED IN 2008
Originally, an intake was constructed in the Kelani River 1. WATER SECTOR DEVELOPMENT PROJECT II (JBIC)
but had to be abandoned due to falling water levels. A FOR COLOMBO AND KALUTARA AREAS
new design was adapted by means of a weir in the Vee Agreement was reached between the Governments of
Oya, now under construction. In the meantime, supplies Japan (JBIC) and Sri Lanka (GOSL) for the implementation
are being maintained through a temporary pontoon of a Water Sector Development Project (WSDP) under
intake. The scheme is currently being administered by the JBIC funding. The project was approved by JBIC in 2007
Pradeshiya Sabha, which will take it over after completion. and the loan agreement was signed in September of that
year between the ERD and the Government of Japan.
Embilipitiya Water Supply Scheme
The existing scheme is being augmented with a treatment The Kalu Ganga Water Supply Project Phase I (Stage II),
plant. Contracts are ongoing for treatment plant, office the Greater Colombo Water Rehabilitation Project and
and water tower. The intake and associated M & E works consulting services are sub-projects included under the
are yet to be finalized by P & D. Water Sector Development Project (WSDP) II.
Udawalawe Water Supply Scheme 2. KALU GANGA WATER SUPPLY PROJECT PHASE I
This, too, is an augmentation of an existing scheme with a STAGE II
treatment plant. Contracts for the treatment plant, intake, The scope of the project includes construction of a
transmission pipeline and M & E works are ongoing. 13.5 MGD-capacity treatment plant, a transmission
Tenders for the distribution system have been finalized main from the plant to Piliyandala and distribution in the
and are in various stages of procurement. The original cost Kesbewa and Horana areas. The duration will be two
estimate for the scheme has proved insufficient, however, years. JBIC assistance has been secured under the 2008
and action will be taken to revise it accordingly. Yen Loan package. Consultants have been appointed and
design work is under way. Project activities will commence
Kalutara Water Supply Scheme after the loan becomes effective in March 2008.
Stage I work has been completed and handed over to
O & M. Stage II work involves the replacement of the This project will benefit 400,000 people in the Colombo
present asbestos cement pipeline by DI at an estimated and Kalutara Districts of the Western Province at an
cost of Rs. 900 million. There are several tenders in various estimated cost of Rs. 8,000 million. The phase will
stages of procurement. cover Gonapola, Kumbuka, Koralaima, Kahathuduwa,
Polgasowita, Kesbewa, Boralesgamuwa, Panadura, Ingiriya
Matugama Water Supply Scheme and Handapangoda.
A PVC pipeline from Kethhena to Matugama was

constructed in 1998-2001 but suffered frequent ruptures. 3. GREATER COLOMBO WATER REHABILITATION
PROJECT
It has now been decided to lay a new pipeline of DI.
Scope includes the construction of two service reservoirs
Meanwhile, as a short-term solution, the possibility of
at Elie House and Maligakanda and water supply facilities
commissioning the existing pipeline after raising the valve
to the Kotikawatta-Mulleriyawa and Kolonnawa areas. The
chamber, installing air valves, etc., is being explored.
estimated cost is Rs. 4,785 million. A Project Director was
appointed in October 2007. The project is expected to be
Ridiyagama Water Supply Scheme
completed by the end of 2011.
This scheme will provide pipe-borne water to a population
of about 5,000 in Ridiyagama town and suburbs by 2015.
4. SMALL TOWNS AND RURAL ARID AREAS IN
The design capacity is 1,300 cu.m./day and the tentative
PUTTALAM, CHILAW, VAVUNIYA AND
estimated cost Rs. 69.37 million. Construction is completed MANNAR WATER AND SANITATION PROJECT
and the scheme has been handed over to the O & M Section. (ADB FIFTH PROJECT)
This project was designed to provide small towns and rural
Thihagoda Water Supply Scheme areas in Puttalam, Chilaw, Vavuniya and Mannar with
This water supply scheme will provide pipe-borne water water and sanitation facilities. Other outputs include the
to a population of about 6,500 in Thihagoda town and strengthening of community-based organizations established
suburbs by 2020. The design capacity is 1,750 cu.m./day on participatory principles under previous projects.
and the tentative estimated cost is Rs. 154 million. The
scheme is now under construction.

Water Supply
5. JAFFNA PENINSULA INTEGRATED WATER SUPPLY The project encompasses the construction of a new
AND SANITATION PROJECT (ADB) 12,000 cu.m./day-capacity treatment plant near the
The feasibility study for this project has been completed existing one at Bambukuliya, together with transmission
with ADB assistance. It covers the development of and distribution systems to improve supplies to the
urban and rural water supply and sanitation in the Jaffna presently-served area and supply currently unserved areas
Peninsula, including a piped sewerage system for the of Duwa, Pitipana and Kochchikade. It is expected that
Jaffna municipal area. The population served with water 21,000 cu.m./day will be supplied through the Towns
will be 600,000 and the project cost is estimated as North of Colombo Project to supplement this distribution
US$ 118 million. The present intermittent supply to system. The expected population to be benefited through
the Jaffna Market area will be improved, with 24-hour this project by 2025 is 214,000.
supplies becoming available on completion of the project.
8. AMBATALE AND NEGOMBO WATER TREATMENT
6. 40 MGD-CAPACITY KELANI RIGHT BANK PLANTS (SPANISH)
WTP (DANIDA) Ambatale Plant: 10 MGD (50,000 cu.m./day)
This is a top-priority project whose purpose is to improve The Letter of Award was issued on 19th December 2007.
water supply to the City of Colombo. It is intended to The contract agreement remains to be finalized. In the
feed the distribution network laid under the Towns North meantime, the contractor has already commenced soil
of Colombo Project funded by JBIC. The project comprises investigation and design work. It is expected that the
a 40 MGD intake and a treatment plant of 40 MGD - contract will be completed within 18 months.
capacity to be constructed on the right bank of the Kelani
River at Ambatale. Negombo Plant: (3,000 cu.m./day)
Several environmental problems were encountered at
There has been a long delay in implementation of this the present treatment plant site. A new location has now
project. However, all contractual matters have now been been finalized.
resolved and implementation will commence by May
2008. Upon completion in 2010, there will be a substantial
9. AMPARA ECTAD, PHASE III (AUSTRALIA)
improvement in water supply to the Greater Colombo Area.
This project is considered as Phase III of the ongoing
ECTAD project to supply unserved areas of Ampara
In order to ensure raw-water quality for the project, the
District. It is proposed to construct 4.5 MGD and 2 MGD
construction of a salinity barrier is essential. Reinforcement of
cu.m./day treatment plants to serve Dammana and
the river banks with sheet piles has been proposed, together
Addalachchenai DS Divisions via a distribution system of
with construction of a concrete apron for placing jute bags.
138.5 km. The project is to be funded by a credit facility
from the Government of Australia.
7. AUGMENTATION OF NEGOMBO WS PROJECT
(DUTCH FUNDING)
The contract has been signed, but project activities are yet
This project aims to increase the capacity of the Negombo
to commence as funds have not been released.
water supply scheme with another intake and additional
treatment facilities. It is estimated to cost Rs. 5,424
10. REHABILITATION AND AUGMENTATION OF
million. The contract has been awarded but funds have
LABUGAMA-KALATUWAWA WTP (HUNGARY)
not yet been released by the Dutch ORET programme.
The project includes the rehabilitation and augmentation
We are currently awaiting release of the funds in order to
of the Labugama and Kalatuwawa water-treatment plants
effect the contract and commence work.
(commissioned in 1886 and 1957 respectively) to improve
treated-water quality and plant operational efficiency
An offer submitted by Biwater Contracting in this regard
and to effect necessary repairs. The contract was signed
has been accepted by the Cabinet, which has awarded this
in September 2007, but the Export Bank of Hungary has
company the tender for implementation on a design-and-
currently suspended credit, putting the project on hold.
build basis. A contract agreement has already been signed
The construction period will be of two years duration,
between the NWSDB and Biwater Contracting.
with completion expected in early 2010. The total project
cost is 34.1 million Euros.

Water Supply
NEW PROJECTS IN THE PIPELINE 6. MAHIYANGANAYA WATER SUPPLY SCHEME
1. GREATER DAMBULLA WATER SUPPLY SCHEME This water supply scheme will provide pipe-borne water to
a population of about 20,779 in Mahiyanganaya town and
This project is to improve water supply facilities for
suburbs by 2027. The design capacity is 4,500 cu.m./day and
fast-developing areas in Dambulla, Kandalama, Sigiriya
the tentative estimated cost is Rs. 989.2 million. Funding is
and Habarana. Population proposed to be served by 2027
not yet finalized.
is 347,551. Total estimated cost of the project is
Rs. 4,094 million. An intake at Dambulu Oya Reservoir,
new treatment plant at the existing plant site and 7. KIRIELLA WATER SUPPLY SCHEME
Reservoirs at Inamaluwa, Habarana and Sigiriya will be Under this scheme, it is expected to provide drinking water
constructed to provide a capacity of 30,000 cu.m./day. to Kiriella township and suburbs. The expected population
served by 2027 is 8,000; estimated demand is 1,800
2. BADULLA AND BANDARAWELA INTEGRATED WSP cu.m./day. The distribution system will approximately
25 km in length. PAC approval has been obtained for this
This project covers Badulla, Hali-Ela, Ella, Bandarawela,
scheme, Cabinet approval is awaited.
Diyatalawa, Haputale, Boralande, Keppetipola, Welimada,
Divitotawela and Ambagasdowa areas. It is planned
to achieve water supply coverage of 55% (average) 8. KARUKKAPONE WATER SUPPLY SCHEME
compared to the present 37%; the current production of Source investigation works were carried out and water-
22,601 cu.m./day will be increased to 67,311 cu.m./day quality reports studied. The scheme will serve 6,600 by 2025.
to serve an additional population of 200,250. The present
sources will be improved and augmented by establishing 9. WATER SUPPLY PROJECT FOR UNSERVED AREAS
OF THE AMPARA DISTRICT
seven surface-water reservoirs across six streams or
rivers in the project area. These will be formed by the Feasibility studies were carried out for pipe-borne water
construction of concrete gravity dams at Moratota- supply facilities to unserved areas in the Ampara District.
Samagipura, Demodara, Gambedda, Kahagolla and Tentative estimated cost of the project is Rs. 13,256.36
Mahatotilla, together with a diversion weir at Rathambe million. It will serve a population of about 185,000 by the
across Uma Oya. year 2026. A design-and-build contact has been awarded,
but the agreement remains to be signed.
3. MONERAGALA-BUTTALA INTEGRATED WSS

10. BADALKUMBURA WATER SUPPLY SCHEME
About 90,000 people in Buttala, Moneragala, Okkampitiya
and Nakkala are to be covered by this WSS at a total The design capacity of this scheme is 3,000 cu.m./day.
estimated cost of about Rs. 1,675 million. 2007 saw The project population to be served by 2030 is about
submission of the project proposal and PAC approval. 16,830 in Badalkumbura town and suburbs. The tentative
Preparation of conceptual designs will shortly commence. estimated cost is Rs. 1,072 million. Funding sources have
not yet been finalized.
4. MATARA INTEGRATED WATER SUPPLY

SCHEME, PHASE IV 11. MAKANDURA, PANNALA, KULIYAPITIYA
INTEGRATED WSS
The project is to serve about 62,000 people in Thihagoda,
Aparekka, Dandeniya and Miriswatta by 2030. The total This project is to construct a 21,000 cu.m./day-capacity
estimated cost is Rs. 2,854 million. A project proposal was water supply scheme, implemented in two phases. The
prepared in 2007. PAC recommended proceeding with proposed source of water is Ma Oya. It is also proposed to
works after finalizing the proposal for a salinity barrier to rehabilitate the existing 2,000 cu.m./day treatment plant at
be constructed at Nadugala (see below). Udubaddawa to improve services to that area, and supplies
will be provided to the Makandura Industrial Zone as well.
The population to be served by 2025 is 112,000. The total
5. SALINITY BARRIER AT NADUGALA
estimated cost is Rs. 1,460 million.
This project proposal was prepared during the year 2007
and approved by the PAC. Through it, at a total estimated
12. MEDIRIGIRIYA WATER SUPPLY SCHEME
cost of Rs. 1,484 million, most of the future drinking-
water requirements of the Matara District will be met. The Existing water supplies in Medirigiriya comprise two
location of the structure is to be finalized in agreement schemes: the Medirigiriya Old Town and New Town
with the Irrigation Department, since early proposals met scheme and the present supply, whose source is a
with some objections from farmers’ organizations. production borehole. The existing scheme needs

Water Supply
rehabilitation and expansion to improve service standards can provide only a restricted supply to people within the
and to cater to increasing demand. Also, health reports Balangoda urban limits, while people in the suburbs use
indicate that 4% of the population in this area suffers from conventional and tube wells or natural streams to obtain
chronic renal failure due to the hardness and high fluoride their requirements of drinking water. The combined
levels of the present water supply. projected demand from both these areas is around
10,000 cu.m./day. The proposed project is to integrate the
In order to rectify this situation, it is proposed to augment Balangoda WSS with the Samanalawewa area, using the
the system by extracting 8,000 cu.m./day from Dambulla Walawe Ganga as main water source, supplemented by a
tank and to construct a water-treatment plant of equivalent spring located at Massenna. The proposed augmentation
capacity to handle this intake. The project will also include will enhance production capacity up to 10,000 cu.m./day,
transmission mains and distribution system expansion. The add 10.5 km of transmission, expanding the distribution
total population to be served is 40,000, in both the Old and network by 25 km. The total population to be served by
New towns. this scheme is 48,000.
13. 10 MGD WATER-TREATMENT PLANT AT HANWELLA 16. GREATER RATNAPURA WATER SUPPLY SCHEME
Along with the ongoing Kalu Ganga Project and the The existing Ratnapura water supply scheme is running at
proposed Kelani Right Bank Project, there is a need for full capacity. It is not possible to expand the system beyond
a further dedicated water-treatment plant to augment the city limits. At present, pipe-borne water supplies cover
supply to Watareka, Meegoda, Pahathagama, Hanwella, only 36% of the population of Ratnapura DS Division.
Meepe, Padukka, Nawagamuwa, Godagama, Jaltara, The rest must depend on conventional and tube wells,
Ranala and Homagama. Consideration was therefore given springs and other unprotected sources. Local development
to constructing a 10 MGD treatment plant at Hanwella as caused by the gem-mining industry and the operations of
an urgent measure. All these areas are undergoing rapid the Kuruwita Industrial Zone have greatly increased the
economic development; as a result, there is very high need for an improved water supply system in Ratnapura,
demand for service-level improvements as well as for Kuruwita and their suburbs.
new connections.
The proposed water supply scheme consists of three new
The project is to be implemented in stages, commencing intakes at different locations to meet the demand. Three
with construction of a 5 MGD plant. Several major intakes are necessary since, during the dry season, the
transmission improvements are also required. quantity of water in the springs and rivers identified as
sources reduces significantly. The three intake locations
14. KOLONNA WATER SUPPLY SCHEME identified are at Induruwa (7,000 cu.m./day), Kaludiya Ella
There is no pipe-borne water supply to the Kolonna area, (2,000 cu.m./day) and Kurunegala (5,000 cu.m./day). By this
whose residents must use conventional wells, tube wells scheme, twelve Grama Niladari (GN) Divisions in Kuruwita,
or spring water to obtain drinking water. In periods of 26 in Ratnapura and 10 in Pelmadulla will be supplied. By
drought, most of these wells and springs run dry, causing 2025, some 160,000 people in the above mentioned areas
great hardship to the people. will be served.
It is intended that Kolonna and its suburbs (Aeraporuwa, 17. GREATER MATALE WATER SUPPLY SCHEME
Kolonna, Maduwanwela, Nandanagama, Kella, 236 GN Divisions in Matale, Ukuwela, Pallepola, Yatawatta,
Ambagahayaya, Pupulketiya, Hambeli-Ara and Walakada) Naula, Rattota and Ambanganga Korale DS Divisions will
and area up to Udagama junction will be served by this be covered under this project, serving 406,866 people.
scheme. An extension is also planned to areas around The total estimated cost is Rs. 6,312 million.
Embilipitiya such as Sudugala, Jandura, Walalgoda, Mul
Aediyawela, Panamura and Koonkatuwa. The project will 18. GALIGAMUWA WATER SUPPLY SCHEME
increase production by up to 8,700 cu.m./day and serve Galigamuwa is a major city situated on the Colombo-
a future population of 55,000 people. The selected water Kandy Road between Kegalle and Warakapola. The
source for the project is Aeraporuwa River. past few decades have seen high growth in the urban
and suburban population and a corresponding rise in
15. BALANGODA WATER SUPPLY SCHEME commercial and industrial activity. The demand for
As a result of the Samanalawewa Hydropower Project, the water has been further increased by the operations of
groundwater table in the Balangoda and Samanalawewa Galigamuwa Industrial Park. However, there is no pipe-
areas has been severely depleted. The existing system borne water supply in Galigamuwa town at present.

Water Supply
There are two options under consideration to improve Diyagama, Kiriwattuduwa and Kirigampamunuwa. The
service to Galigamuwa. One is to utilize the Gurugoda estimated cost is Rs. 13,929 million. Works comprise
Oya by means of a 3,000 cu.m./day plant. The other the construction of a new intake and 90,000 cu.m./day
option is to use the Maha Oya at Alawwa with a 5,000 water-treatment plant, installation of pumps, laying of new
cu.m./day plant. With the first option, a population of raw-water and treated-water transmission mains, distribution
17,500 can be served. With the second option, however, improvements in the project area and construction of water
the number is increased to 30,800. towers and reservoirs. PAC and Board approval have been
obtained. A funding request has been submitted to the
19. RUWANWELLA WATER SUPPLY SCHEME External Resources Department.
The present water supply scheme covers Ruwanwella
town and suburbs. It consists of a direct intake with 22. PATHADUMBARA INTEGRATED WATER
SUPPLY SCHEME
pumping from the Kelani River where it passes through
Ruwanwella town. This source presently provides a Areas under this project are Kundasale, Polgolla,
minimum of 1,400 cu.m./day and can serve about 10,000 Medadumbara, Theldeniya, Rangala and Udispaththuwa,
people within the town limits. At present, pipe-borne covering 723,000 people. Total estimated cost is
water supply covers only 16% of the drinking-water Rs. 7,128 million.
demand in Ruwanwella DS Division; the rest must depend

on alternative sources. Thus, though Ruwanwella is 23. AUGMENTATION OF HARAGAMA WATER
SUPPLY SCHEME
situated in the Wet Zone, 84% of its population depends
Areas under this project are Haragama, Gurudeniya West,
on unsafe water sources, increasing the incidence of
Thalatuoya and Pinnagolla, covering 144,162 people. Total
water-borne diseases.
estimated cost is Rs. 989 million.
There are two options considered for the proposed

project. The first is to extract 10,000 cu.m./day of raw 24. AUGMENTATION OF MARASSANA WATER
SUPPLY SCHEME
water for treatment from the Kelani River and Ritisaha
Areas under this project are Bopitiya, Pothgoda, Murapola,
Oya. The second is to construct a 1,900 cu.m./day-
Bowlana, Medagama, Udugama and Pallegama (22 GN
capacity intake and water-treatment plant using the Magal
Divisions) covering 17,142 people. Total estimated cost is
Oya as water source and constructing a new 1,900 cu.m./
Rs. 276.5 million.
day treatment plant at Deraniyagala.
25. DEHIATTAKANDIYA WATER SUPPLY SCHEME

20. MAHA OYA WATER SUPPLY SCHEME
People in the town of Dehiattakandiya are served by a
Under the Irrigation Department’s Rambukkan Oya
water supply scheme designed and constructed in 1984
project, various infrastructure developments are proposed
under the Mahaweli Development Programme while
for the Maha Oya area. Among these, the NWSDB was
suburban residents of Dehiattakandiya use conventional
requested to implement a water supply scheme for Maha
wells and irrigation channels to meet their drinking-water
Oya. This will serve the township, including the Maha Oya
requirements. The population served by the present
District Hospital, and also supply water to the Maha Oya,
scheme is about 3,200; actual demand is 600-700 cu.m./
Dambadeniya, Kekirihena, Thappalpola and Samagipura
day. The existing treatment plant presently operates for
GN Divisions. The expected population to be served by
10-12 hours a day.
2031 is 32,000, with demand estimated at 7,000 cu.m./
day. The tentative estimated cost is Rs. 516.6 million.
The Department of Health has identified the
The Irrigation Department has allocated Rs. 260 million
Dehiattakandiya area as having one of the highest
to implement this water supply scheme. However, PAC
incidences of kidney disease due to water-quality issues.
approval is yet to be sought.
In order to serve the suburbs of Dehiattakandiya and
minimize this health hazard, a new scheme is proposed.
21. KALU GANGA WATER SUPPLY PROJECT,
PHASE II, STAGE I The Mahaweli River has been identified as the potential
water source, whereby it is proposed to increase the
This proposed project for Kalutara District in the Western
capacity of the water-treatment plant to 4,100 cu.m./day.
Province will benefit 600,000 people in Panadura, Wadduwa,
The total population to be served by the proposed project
Waskaduwa, Kalutara North, Homagama, Magammana,
is 20,000.

Water Supply
26. IPALOGAMA WATER SUPPLY SCHEME 28. TRANSMISSION MAINS FUNDED BY FINNIDA
(TSUNAMI SITE)
The Ipalogama area is currently supplied by a scheme
of 415 cu.m./day capacity located at Kekirawa, which The following transmission mains are to be laid for the
serves a population of 2,000. Construction of a new full- provision of water supplies to tsunami-affected people in
treatment plant of 9,000 cu.m./day capacity is progressing the Ampara District:
under the ADB-3 Project. z Konduwattuwana to Bangalawadiya

z Bangalawadiya to Kalmunai
In order to cater for a proposed housing project for
Ranaviru war veterans, which will further increase the
The total estimated costs of these transmission mains are
growing demand for water, the proposed project plans
Rs. 915 million and Rs. 724 million respectively. Design
to expand the scheme’s production capacity by an
of the Konduwattuwana-Bangalawadiya main has been
additional 9,000 cu.m./day with Yoda Ela as the source.
completed and separate tender documents for supply and
The project will include transmission and distribution
laying have also been prepared and completed. The design
improvements as well. The total population to be served
of the transmission main from Bangalawadiya to Kalmunai
by the scheme is 50,000.
is in progress. However, FINNIDA has now withdrawn its
funding commitment and new funds will have to be sought.
27. KALUTARA WATER SUPPLY AUGMENTATION
PROJECT, STAGE III
29. KARAGODA-UYANGODA WATER
This project has been proposed to serve 490,000 people SUPPLY SCHEME
in the Kalutara District of the Western Province. Areas
The area is served by an existing water supply scheme. On
covered are Kalutara North and South, Wadduwa,
the request of the Provincial Office (Southern), a project
Payagala, Maggona, Beruwala, Aluthgama, Dharga
proposal has been prepared for the augmentation of the
Town, Bentota, Pilaminawatta, Bombuwela, Dodangoda,
scheme and submitted for suggestions and views. The
Matugama, Agalawatta and Nagoda. The estimated cost
estimated implementation cost is Rs. 579 million.
of the project is Rs. 3,815 million.
30. PANAMA WATER SUPPLY SCHEME

The scope of the project includes transmission
This project was originally proposed as part of the Pottuvil
improvements up to Beruwala, construction of ground
water supply scheme to be implemented by USAID.
reservoirs at Kalutara North, Beruwala, Dharga Town,
However, due to funding restrictions, USAID removed the
Bombuwala, Matugama and Bentota, construction of
Panama area from its scope. The treatment plant designed
new towers at Morontuduwa, Nagoda, Matugama and
by USAID was reviewed and the distribution designs
Agalawatta, and installation of pumps and other distribution
completed by P & D. The project cost is estimated as
improvements in the project area. PAC and Board approval
Rs. 330 million. Requests for funds have been submitted
has been obtained and a request has been made to the
to the relevant authorities.
External Resources Department to seek funding.

Water Supply
WATER QUALITY The committee will be convened by the General Manager,
NWSDB, and will meet quarterly. It will be the committee’s
IMPLEMENTATION OF A WATER QUALITY
SURVEILLANCE SYSTEM responsibility to:
In 2006, a joint Cabinet Paper (Department of Health z maintain a registry of suppliers;
and NWSDB) was processed and submitted to the Board
z define policy and monitor implementation;
of Directors, in which the proposed basic framework of a
z co-ordinate with other sectors;
water-quality surveillance system was initiated, the details
of which are as follows: z issue guidelines and standards;
z Schemes Managed by the NWSDB z define hygiene-promotion strategy;
Each water provider must prepare a water-safety plan z approve the registration of new suppliers; and
(WSP) for every scheme under its purview. Water-quality z periodically renew the programme.
testing and a record of quality-surveillance activities will
be part of the WSP. Regional Laboratories will be in charge The NWSDB will provide logistical and technical support
of conducting annual and/or seasonal water testing of the for the implementation of these tasks. The NSC will provide
final product. feedback to the regional committees where appropriate.
z Schemes Under Other Management The water-quality surveillance system initiated in 2006
The RWSSD, in conjunction with the NWSDB, will prepare was active in numerous areas during the course of 2007.
a set of standard WSPs to be utilized by CBOs and local Specifically,
authorities and conduct training for the caretakers of
z a joint Cabinet paper on a water-quality surveillance
these schemes and hand-pumps. Routine water-quality
system (Department of Health and NWSDB) was
testing and records of quality surveillance activities will be
processed and submitted to the Board of Directors;
part of the WSP. The service providers will be in charge of
conducting annual and/or seasonal testing of the z NWSDB prepared a training manual, Water Safety Plan
final product. for Dug Well, Rainwater Harvesting and CBO-Managed
Piped Water Supply Schemes;
National Steering Committee
z a training programme on water-quality surveillance for
A National Steering Committee (NSC) leading to the the NWSDB was held in February 2008;
implementation of a water-quality surveillance system was
z the decision was taken to establish national and district
formed during 2006. On this committee, the following are
water-quality surveillance committees very soon, with
represented:
Assistant General Managers in the provinces taking a
z National Water Supply & Drainage Board leading role in this regard;
z Ministry of Health
z six NSC meetings were held during 2007, and terms
z Sri Lanka Standards Institution of reference for the committee and a water-quality
z Rural Water Supply and Sanitation Division surveillance system were prepared;
z Ministry of Provincial Councils and Local Government z an awareness programme for Public Health Inspectors
z Medical Research Institute (Microbiologist) was held at the Ministry of Health by NWSDB; and
z Central Environmental Authority z an awareness effort for NWSDB officers was launched,
z Government Analyst disseminating relevant information to the respective
officers.

Water Supply
Sewerage
‘‘ The P & D Sewerage

section engaged in
GENERAL
1. ESTABLISHMENT OF A SEWERAGE SECTION
During 2007, the NWSDB decided to establish a separate division
18 projects of various to handle sewerage activities. For this purpose, the post of
Additional General Manager (Sewerage) was created and other
magnitudes during the staff positions approved by the Board of Directors.
’’
year under review
The following are the responsibilities of the Additional GM
(Sewerage):
z Sewerage operations in the Greater Colombo Area and regions

z Planning and design activities related to sewerage schemes
z Foreign-funded sewerage projects
2. PLANING & DESIGNS SEWERAGE SECTION

The P & D Sewerage Section engaged in 18 projects of various
magnitudes during the year under review. Nine minor projects,
totalling in value Rs. 304 million, were undertaken by the section
on a rechargeable-job basis. Planning and feasibility studies
were completed for two major potential projects, namely
Sri Jayawardhanapura Kotte and Galle Sewerage Projects.
Work on major projects is proceeding where funding sources

have been secured. Also, a development proposal to achieve
the NWSDB’s corporate goals in respect of providing improved
sewerage-infrastructure facilities is being prepared. In addition to
this, design inputs have been made to the Greater Colombo Sewer
Rehabilitation Projects in the Southern and Northern Catchments.
3. MODARAWILA SEWERAGE PROJECT

This a rechargeable project carried out on behalf of the Urban
Development Authority (UDA). The treatment plant is being
operated by the Construction Section. Difficulties have been
experienced in disposing of the effluent. As a long-term solution,
a wetland has been proposed. Funds and necessary land are to be
obtained from the UDA.
4. IMPLEMENTATION OF SEWERAGE TARIFF

Cabinet approval was received in 2007 for the introduction of a
sewerage tariff. The charge has been included as a part of the water
bill since January 2008. Due to issues regarding ownership of assets,
no sewerage tariff will be implemented in the CMC area for the
time being. However, implementation commenced with respect
to the Soysapura, Mt. Lavinia, Kolonnawa, Jayawadanagama,
Maddumagewatte, Raddoluwa, Mattegoda, Hikkaduwa, Koggala,
Kataragama and Hantana sewerage schemes in January 2008.
MAJOR SEWERAGE PROJECTS
LOCATION MAP OF FOREIGN-FUNDED PROJECTS UNDER CONSTRUCTION/AUGMENTATION DURING 2007

Sewerage
PROJECTS UNDERTAKEN WITH DANIDA ASSISTANCE town. A population of approximately 34,000, including
1. Greater Kurunegala Water Supply and 2,844 homes, 985 shops, 91 Government institutions and
Sanitation Project, Stage I six hospitals, will be served by the sewerage component
The Greater Kurunegala Water Supply and Sanitation by 2015. The major items of the sewerage system consist
Project (Stage I) consists of a water supply package and a of a wastewater-treatment plant, four lift stations and
sewerage package. It will be implemented as a a sewer network of 85 km, as well as 3,200 new sewer
design-and-build contract. The estimated cost of this is connections and a connection with the General Hospital
Rs. 3,686.8 million. The total project period is 30 months, sewer network.
of which the first six months will be the design phase. The
project commenced in March 2008 and will be completed Tender evaluation was in progress during the year
by the end of 2010. under review. Environmental clearance was obtained, a
Project Director appointed and acquisition of land for the
z Package A (Water Supply) project began.
The water supply component of this project covers the
Kurunegala municipal area and a part of the Pradeshiya 2. Colombo Sewerage Rehabilitation Project
Sabha area. Nearly 65,000 people will benefit from the The objective of this project is to rehabilitate part of
expansion of water supply facilities. The major items of the existing sewerage system in the Colombo Municipal
the system are a weir across the Deduru Oya, expansion Council area. This portion, some 100 years old, has been
of the water-treatment plant, an intake well and pumping identified as the most critically endangered of the overall
station, water tower, 500 mm. DI pumping main, system. The sewer line has deteriorated due to acidic gas
distribution network expansion (110 km) and construction attack and is now in a dilapidated condition, resulting
of a training facility for the Regional Support Centre. in regular sewer and road collapses and blockages. The
project is jointly funded by the Royal Danish Government
(Rs. 2,500 million) and the Government of Sri Lanka
(Rs. 800 million).
Construction of Intake for Kandy
z Package B (Sewerage)
The sewerage component of the project will provide safe Lining Sewer Lines
wastewater disposal facilities to Kurunegala Teaching
Hospital and environmentally-sensitive areas of Kurunegala Under this project, a new sewerage pumping station has
been constructed at Madampiitya, increasing pumping
capacity to 2.9 cum/sec to meet projected demand by
2020. It is now in operation. Work on the new pumping
station is also largely completed. The non-man-entry
sewers were lined and rehabilitated by the cured-in-place-
pipe (CIPP) method and the man-entry sewers were lined
and rehabilitated by glass-reinforced pipe (GRP) panels.
The Wellawatte S8 pumping station was rehabilitated
by replacing its M & E equipment. In effect, most of this
project has now been completed.
Mahaweli Pipe Bridge for Kandy

Sewerage
PROJECT UNDERTAKEN WITH ASIAN DEVELOPMENT and US$ 1,268,782 to finance the EKN Premium Flat. A
BANK ASSISTANCE subsidiary financing agreement between the Government of
Greater Colombo Wastewater Management Project Sri Lanka and the NWSDB was also signed.
It is proposed to rehabilitate the wastewater system in
the Greater Colombo (Kolonnawa, Dehiwala and Mount The tender for supervision consultancy closed on
Lavinia) areas under this project. An ADB-funded technical- 17th September 2007. Evaluation is now in progress.
assistance assignment was undertaken during the year under
review to identify the project scope, with implementation An aspect of the proposed scheme is that 121 families
scheduled from 2008 to 2012. The total estimated cost of living in Sumitha Mithudampura, adjoining the existing
the project is Rs. 14,300 million. The contribution from the wastewater-treatment plant at Soysapura, have to be
ADB is US$ 100 million (Rs. 11,000 million) and the balance relocated in order to that land required for the proposed
will be met by the GOSL. wastewater-treatment plant can be obtained. The National
Housing Development Authority has been assigned to
The main components identified for implementation are: resettle these families in accordance with the Sri Lanka
National Involuntary Resettlement Policy. At time of
z rehabilitation of the sea outfalls at Mutwal and
writing, 116 families had been relocated.
Wellawatte;
z construction of new pumping stations at the Port of PROJECT UNDERTAKEN WITH JBIC ASSISTANCE
Colombo, Bambalapitiya, Borella and Maligawatta;
Kandy City Wastewater Disposal Project (KCWDP)
z rehabilitation of the Mount Lavinia, Dehiwala, The indiscriminate disposal of wastewater in the city of
Kolonnawa, Meetotamulla, Wellampitiya, Colombo Kandy pollutes Kandy Lake, the Meda Ela and ultimately the
Harbour and Vystwyke pumping stations; Mahaweli River, which is the main drinking-water source
for the Kandy and Matale Districts. To find a permanent
z provision of new sewerage facilities to areas within
solution to this problem, NWSDB proposes to implement
Colombo to benefit 24,200 new householders;
a wastewater disposal system for the City of Kandy with
z rehabilitation of some sewers in Colombo (about the financial assistance of the Government of Japan. The
5,000 m.); and proposed project will collect wastewater in 724 hectares of
z on-site sanitation facilities for the Maharagama the city and divert it to a treatment plant of capacity
Municipal Council area and some public toilets in the 17,000 cu.m./day through a 109 km pipeline network.
Kaduwela Pradeshiya Sabha area.

Achievements in 2007
About 700,000 residents of Colombo and another 500,000 z Putting an end to considerable uncertainty, the
visitors will be served on completion of the project in 2012. pre-construction phase of KCWDP was included as a
It is expected that occurrences of water-borne diseases will sub-project of the Wastewater Sector Development
be considerably reduced, while the canal system and beach Project under JBIC soft loan SLP-90. The loan
from Mount Lavinia to Modera will no longer be polluted agreement between JBIC and the GOSL was signed
with overflows from wastewater sources. on 28th March 2007. The allocation for KCWDP is
¥ 311 million.
PROJECT UNDERTAKEN WITH SWEDISH ASSISTANCE z Construction methodology of the project was changed
Wastewater Disposal Systems for Ratmalana-Moratuwa from conventional to design-and-build. A detailed
and Ja-Ela-Ekala basic design will be prepared for bidding documents, in
The works contract for the above project was awarded particular for sewers.
to the Danish firm Pihl/Läckeby-Purac. The contract
z A preparatory sociological study was carried out
agreement was signed on 24th October 2007. Approval of
to identify those necessary sanitation facilities that
the Cabinet of Ministers was obtained to amend the specific
could be managed by community members in
agreement entered into by the Governments of Sweden
densely-populated low-income areas (Mahaiyawa,
and Sri Lanka in order to enhance the credit facility provided
Deiyannewela, Suduhumpola, Andupattiya and
by Sweden from US$ 79,300,000 to US$ 91,918,967.
Nuwarawela) within the project service area. The
Cabinet approval was also obtained to borrow this sum
study was carried out by a team, whose members
from the Swedish institution Svensk Expotkredit. The
included engineers and a sociologist, between June and
amount includes US$ 90,650,485 to finance the project
December 2007 with financial assistance from JBIC.

Sewerage
z Cabinet approval was obtained on 31st October 2007 PROJECT UNDERTAKEN WITH AUSTRIAN ASSISTANCE
to award a design-and-build contract for the relocation Rehabilitation of Southern Catchment of Greater
of quarters currently occupying the proposed treatment Colombo Sewerage Project
plant site to the Central Engineering Consultancy Bureau The existing Colombo sewerage scheme comprises
(CECB). The total contract package is Rs. 106 million around 300 km of sewers, 18 major pumping stations
including price escalation, physical contingencies and at strategic locations, and two ocean outfalls. Parts of
VAT. Concurrence from the Department of Agriculture is the sewerage system are almost 100 years old. The
awaited for the building plans prepared by the CECB. system has deteriorated over the years and is now very
dilapidated. Collapses and blockages are experienced
z Proposals for consultancy services for detailed basic
regularly, exacerbated by a lack of proper operation and
design and construction supervision were requested
maintenance with respect to the sewers and pumping
from four foreign consultancy firms, three from Japan
stations. This has led to overflows and short-circuiting,
and the fourth from Denmark.
causing serious pollution in water bodies and the
z Approval to establish the Project Management environment as a whole.
Unit (PMU) was received from the Department of
Management Services and recruitment of staff is now
in progress.
z Public support for the project was cultivated through

awareness programmes and media activities.
PROJECT UNDERTAKEN WITH USTDA ASSISTANCE

USTDA Grant Assistance to Carry Out a Feasibility Study
on Wastewater Disposal Infrastructure for Tsunami-
Affected Towns in Sri Lanka (Negombo and Galle)
The U.S. Trade and Development Agency (USTDA)
made a grant of US$ 491,000 available to the NWSDB
to be used in implementing the above project on behalf Cleaning of Sewer Line
of the then Ministry of Urban Development and Water
Supply (MUDWS). This was pursuant to the grant
agreement between USTDA and the MUDWS dated
19th September 2005.
The original contract agreement signed between B & E

Engineers and NWSDB on 23rd August 2006 was amended
on 12th December 2006 to allow preparation of a feasibility
study report on the sewerage infrastructure in tsunami-
affected towns. Project duration was twelve months. Initial
studies were carried out in the towns of Negombo, Galle,
Matara and Hambantota. The first two were subsequently
selected for feasibility studies. Closer View of Sewer Cleaning Process
The reports for Galle and Negombo will shortly be ready This is a project to construct a main sewage pumping
for submission to the External Resources Department in station at Wellawatte serving a large portion of the
quest of a potential donor agency for implementation southern catchment, and to rehabilitate two main sewer
subsequent to approval by the Board of NWSDB. The lines (approximately 7.3 km long and having diameters
tentative estimated cost is Rs. 4,100 million, to serve a from 300 mm to 1,500 mm) leading to the Wellawatte
population of 163,000. pumping station. The project is estimated to cost

Sewerage
Rs. 2,222 million, of which Rs. 1,585 million and Pre-feasibility study reports for Gampaha and Kattankudy-
Rs. 637 million come from the Bank of Austria and the Batticaloa have already been completed.
GOSL respectively. The contract has been in force since
June 2007. Notice to proceed was only given to the 3. Rechargeable Jobs
contractor on 22nd November 2007, owing to a delay in The section was involved with activities pertaining to
securing land for the contractor’s stockyard. nine rechargeable jobs, which covered planning, design,
tendering and construction supervision (depending on
By the end of 2007, the contractor had fully mobilized the level of technical assistance sought by the client
and had established site and main offices. Installation of organization). They are:
an impregnation plant at the stockyard was in progress. At
1. Havelock City sewerage development
the time of writing, 40 days after notice to commence was
given, 1,641 m of sewer line had been cleaned and CCTV 2. Wastewater treatment and disposal facilities for Kandy
inspection of a further 1,395 m had been carried out. A BOI industrial zone, Pallekelle
Project Director was appointed in late September 2007.
3. Improvement of sewerage facilities at
Sri Jayawardhanapura University
NEW PROJECTS IN THE PIPELINE
4. New sewer network facilities for the Meteorological
1. Sri Jayawardhanapura Kotte Sewerage Scheme
Department, Colombo
Scope of work on this project covers construction of
pump-houses and a pumping main to the Wellawatte 5. Mitigatory action for sewer overflow issues at
pumping station, and supplying and laying 130 km of Jayawardhanapura Hospital
sewer network. The project will serve 250,000 people
6. Wastewater treatment facilities at MTV broadcasting
by 2030 at a tentative cost is Rs. 12,645 million.
studio, Pannipitiya
Implementation is considered to be of highest priority,
and Cabinet has approved implementation utilizing 7. Improvement of wastewater treatment and disposal
donor financing. A Chinese party has submitted a facilities at Jaffna Female Hostel
project proposal, which is under evaluation. The areas
8. Wastewater treatment facilities for NHDA housing
to be sewered are Sri Jayawardhanapura Kotte MC,
scheme at Jaltara, Horana
Maharagama UC and Kaduwela Pradeshiya Sabha.
9. Wastewater treatment facilities at Ratmalana Tsunami
2. Feasibility Studies Housing Scheme
The sewerage section has undertaken seven technical

The total value of rechargeable works handled by the section
feasibility studies:
in 2007 was approximately Rs. 160 million, excluding the
1. Kataragama Sacred City sewerage facility improvement works at Jayawardhanapura Hospital (Rs. 44 million), which
2. A new sewerage system for the Gampaha UC area at is still in the pipeline. Consultancy fees earned by the NWSDB
an estimated cost of Rs. 648 million, to serve 25,000 from these jobs will be about Rs. 20 million excluding VAT.
people by 2027
Balance works on the above rechargeable jobs will be
3. Sewerage facilities for Kattankudy-Batticaloa at a
carried forward to 2008. It is hoped to commence new
preliminary cost of Rs. 3,853 million, to serve 143,000
pre-feasibilities for sewerage infrastructure facilities in
by 2028
major towns such as Hambantota and Matara.
4. Sewerage facilities to Hakmana town council area
5. Akkaraipattu surface drainage system
6. Formulating project scope for urgent rehabilitation of

the Greater Colombo sewerage system

Sewerage
‘Cleaning Water’...
Water good enough for our use needs to be purified...

to exacting standards. The process involves cost.

Water is a Precious Resource. Let’s Save2007
Annual Report It! 51
Development Works
‘‘ Funds were used to

improve the quality
FINANCIAL SOURCES
The NWSDB was provided with Rs. 14,166 million as foreign funds
for capital works. The GOSL contribution was Rs. 4,587 million as
and quantity of water counterpart funds. In addition, Rs. 2,625 million was contributed
through small and medium water-supply projects. For the
supplies, maintain reconstruction of tsunami-affected water supply systems, a sum of
NWSDB’s assets and Rs. 4,713.6 million in foreign funds and Rs. 1,158.5 million in local
counterpart funds was provided.
undertake related
support services in
’’
operational activities

UTILIZATION OF CAPITAL FUNDS
Capital fund utilization stood at 77% in 2007, placing the
NWSDB among the few public sector organizations to
have made satisfactory use of their allocated capital funds.
* India and KfW Assistance
REHABILITATION AND IMPROVEMENT OF EXISTING

WATER SUPPLY SCHEMES
The NWSDB continued to rehabilitate and improve
COMPARISON OF CAPITAL FUND UTILIZATION, existing water supply schemes using its own finances,
2006/2007 which amounted to Rs. 245 million in 2007. These funds
Description 2006 2007 were used to improve the quality and quantity of water
Local Component supplies, maintain Board assets and undertake related
(Rs. million) 4,748 83.0 6,060 72.4 support services in operational activities. Priority was given
Foreign Component to improvements in schemes where donor assistance or
(Rs. million) 12,376 62.0 15,028 79.6 major funding was not available.
Total 17,124 67.0 21,088 77.4

Development Works
RURAL WATER SUPPLY AND SANITATION 4. UNICEF WELL-DRILLING PROGRAMME IN
AMPARA DISTRICT
1. ACTIVITIES IN RURAL AREAS
UNICEF provided 2 drilling compressors, support trucks,
Participatory and demand-responsive approaches practised
drilling accessories, drilling consumables and other spare
in rural water supply and sanitation activities continued in
parts to carry out 200 hydrogeology investigations and
2007. Issues emerging after the implementation of rural
drill associated tube wells in tsunami- and war-affected
water supply schemes were:
areas of the Ampara District. The project commenced
z sustainability of CBOs; and in August 2007. 20 drillers and 10 technical staff for
z supporting backup to CBOs; from the NWSDB. well drilling and rig maintenance were trained over the
following months to December.
Various initiatives were introduced by the NWSDB to cope

with these needs in the rural water supply sector. To expedite the programme and ensure long-term
sustainability of the resource, a Groundwater Office was
established at Ampara.
2. CONSTRUCTION OF DEEP WELLS
Under various sources of funding, NWSDB continued the
5. SOLAR ENERGY FOR THE DEVELOPMENT OF
construction of deep wells to provide water supplies for
RURAL EDUCATION AND HEALTH
Dry Zone rural communities in 2007. Of 636 wells drilled INFRASTRUCTURE FACILITIES IN SRI LANKA
during the year, 513 were successful - a success rate of (SOLAR POWER PROJECT)
81%. 220 hand pumps were also installed and 42 existing This project provided water and electricity to schools
tube wells completely rehabilitated. and Gramodaya Health Centres in the Anuradhapura,
Polonnaruwa, Matale, Nuwara Eliya, Badulla and
528 hand pumps were repaired during the year and Moneragala Administrative Districts.
197 wells flushed.
Hydrological investigations were carried out and 228
3. WORLD VISION NATIONAL WELL-DRILLING successful wells were drilled, together with the flushing of
PROGRAMME 13 boreholes.
The NWSDB signed a MoU with World Vision LTRT in
February 2006 to embark upon a national well-drilling
programme. World Vision provided equipment to the
cost of about US$ 1,250,000, including 2 drilling rigs,
3 vehicles, 700 hand pumps, etc., in order to increase
NWSDBs capacity to serve tsunami-affected communities
in need of potable water.
245 deep wells were completed during the year 2007: 39

in Kalutara, 80 in Galle, 38 in Matara, 50 in Hambantota,
22 in Moneragala, 12 in Ampara and 4 in Nuwara Eliya.

Development Works
MISCELLANEOUS A wide area network covering all Managers’ offices across
the island (including Regional Support Centres) was also
POLICY AND STRATEGIC PLANNING UNIT
completed during the year under review. The associated
The functions of the Policy and Strategic Planning Unit were:
virtual private network was provided by Sri Lanka Telecom.
z obtaining Cabinet approval for national policy on
sanitation and drinking water; Regional stores were provided with the necessary
computers, printers and UPSs. Funds were made available
z finalization and compilation of all relevant policy
for this work under the ADB Fourth Project.
documents;
z development of guidelines for the planning process and Verification of fixed assets was undertaken by the
for processing unsolicited proposals; Valuation Department. Schedules of fixed assets were
z formulation of capacity-building programmes with a provided by the IT Division.
special emphasis on developing financial skills;
Computer-hardware maintenance issues reported to the IT
z development of comprehensive briefs on projects in the
Division by various other Divisions were attended to.
pipeline; and
z providing necessary secretarial services to donors in the GIS DEVELOPMENT UNDER MAPPING SECTION
formulation of projects. The GIS technology introduced to the Mapping Section
under a NORAD funded project was fully institutionalized
INFORMATION TECHNOLOGY DIVISION in 2006. In addition to regularly updating the Greater
Work in connection with the enterprise-wise IT project Colombo Water Utility GIS, the NWSDB Mapping Section
continued during the year under review. The contract for successfully completed the Colombo City Sewerage and
the solution was awarded in February 2005 to Co-options Storm Water GIS Development Programme in 2007 and
Technologies, an Indian firm, for a sum of US$ 4.64 million. commenced several key development tasks such as digital
This included supply and installation of computer hardware base-map development using high-resolution satellite
to be financed by the NWSDB. This activity was undertaken images for the northern area of the Greater Colombo
by the NWSDB. Supply and installation of the hardware was Region, outstation mapping and GIS development, and an
completed during the course of the year. Additionally, the initial study for sewerage GIS development for the rest of
contract sum was reduced to US$ 3.98 million. the Greater Colombo Region. Additionally, the Mapping
Section conducted several training programmes on GIS
Software design and development work was also and GPS technology for NWSDB staff.
completed during the year. Laboratory testing carried
out in India was verified by NWSDB staff, and various
clarifications and amendments were made in the course
of the year. Cumulative expenditure to 31st December 2007
was US$ 2.90 million. Physical progress as at that date
was 75%. Field testing of the software solution, staff
training, etc., were also undertaken in 2007. The project is
scheduled for completion on 31st March 2008.
In addition to the IT solution project, an online payments

system, consumer complaints system and asset management
system were also formulated during the year.

Development Works
Our Employees, Our Strength
‘‘ NWSDB’s Manpower
Development &
STAFF STRENGTH
Staff 2006 2007 Variation
(%)
(a) Permanent* 7,532 8,021 6.5

Training Division (b) Casual 530 413 (22.1)
continued to provide (c) Contract 173 305 76.3
(d) Trainee – 29 –
training opportunities Total 8,255 8,768 6.2
to employees during * The permanent staff figure excludes staff recruited for foreign funded projects
’’
2007, as in the past
Distribution by Key Job Function
There were 305 contract and 442 casual and trainee employees
in addition to a permanent staff of 8,021 at the end of 2007.
Most contract employees were recruited for work on foreign-
funded projects.

STAFF REMUNERATION AND BENEFITS NWSDB’s Manpower Development & Training Division
Comparison of Staff Remuneration in 2006 and 2007 continued to provide training opportunities to employees
Description 2006 2007

during 2007, as in the past. Training programmes were
Rs. million Rs. million conducted to cover all categories of staff from managers
to operative staff. Based on priority training needs
Salaries 2,801 3,070
identified by senior and line managers, employees in
Contribution to Employees’
various categories were provided with training through the
Provident Fund 248 308
following approaches:
Contribution to Employees’
Trust Fund 62 78
(a) Formal in-house training courses, seminars
Total 3,111 3,456 and workshops
The division conducted 143 in-house training courses in
Staff Benefits
2007. 431 managerial staff, 737 supervisors, 283 clerical
z An annual bonus of Rs. 22,500 (inclusive of a and allied grades, 684 operatives and 1,312 mixed group
productivity incentive) was paid. employees were included in these courses. Programme
z Encashment of unused medical leave was continued. content related to the following areas:
z 1,758 concessionary loans (1,656 ten-month loans z Water quality monitoring

and 102 twelve-month loans or approximately z Water and wastewater treatment
Rs. 243,695,760) were disbursed among employees.
z Analysis of water distribution systems
z 200 employees were granted terminal benefits
z Energy conservation
(department allowance).
z Reduction of non-revenue water
z 296 employees were felicitated for their unblemished
service records at special ceremonies (regional offices z Safety at work sites
only).
z Disciplinary procedures
z Approximately Rs. 2,611,161 was paid in
z Financial rules and regulations
reimbursement of employees’ medical expenses
(both in- and out-patient treatment). z Accounting standards
z 448 casual or contract employees were made z Materials management

permanent in their posts during the year under review.
z Tender procedures
z Computer applications
z Geo-informatic systems
z Management skills
z Induction programme for new recruits
z Awareness and refresher programmes

(b) Training at other training institutions in the country
323 employees received training externally through
local training institutions. Some attended masters’ and
postgraduate programmes conducted by local universities,
while others took diploma and certificate courses offered
by institutions such as the National Institute of Business
Management, the Institute of Personnel Management,
the Institute of Supplies and Materials Management, the
Sri Lanka Institute of Development Administration, the
Institute of Chartered Accountants of Sri Lanka and the
Centre for Housing, Planning and Building.
(c) Overseas training

Overseas training was provided to 98 employees of the
NWSDB, including official visits by 43 officers in respect of
inspection visits, meetings etc.
(d) On-the-job training

On-the-job training was provided to 55 apprentices
(undergraduates, special apprentices, National Diploma
in Technology/Higher National Diploma in Engineering
trainees and craft apprentices) under the National
Apprentices and Industrial Training Authority (NAITA)
training programme.

New Focus
‘‘ The NWSDB was

represented at a
RESEARCH & DEVELOPMENT SECTION
The R & D Section conducted the following activities in the year
under review:
‘one-stop shop’ for 1. AIR-RELEASE VALVE

An air-release valve was developed by the Section as a solution to
300 industries, which the problem of consumers receiving air through their water meters.
was located at the Five hundred units of the PVC valves are now being distributed for
field testing.
Board of Investment.
All industries that
requested water supply
facilities were advised
on the best option
available to meet their
water and sewerage
’’
requirements Air Release Valve
2. STUDY ON IDENTIFICATION OF ECONOMICAL

COAGULANTS FOR DIFFERENT RAW WATERS IN
WATER TREATMENT
A pilot study on the use of Poly Aluminium Chloride in place of
alum as a coagulant to optimize chemical usage in water-treatment
plants was studied. It was concluded that Poly Aluminium Chloride
is the next-best alternative to alum with respect to economy.
3. KATARAGAMA PEBBLE MATRIX FILTER PROJECT

Pebble matrix is a novel pre-filter technology applicable when raw
water turbidity is very high (exceeding 500 NTU). Experiments have
shown that pebble-matrix filter units reduce turbidity to 30 NTU
in such water and are recommended for use before slow sand
filters. Construction of two such filters for the World Bank-funded
Kataragama water supply scheme is in progress. The filters will be
commissioned in early 2008.
4. WATER RESOURCES DATABASE

A water resources database would be invaluable for use in
forecasting and planning new schemes. The planned database
marks intake locations using GPS and specifies details of intake,
extraction, available treatment facilities, number of connections,
etc. Data collection has been completed for the Kandy,
Anuradhapura, Galle, Hambantota and Matara Districts.

5. WALAPANE WATER SUPPLY SCHEME The following activities were initiated and are ongoing in
IMPROVEMENT facilitation of the programme:
This proposal to improve the Walapane water supply
z collection of details concerning all villages selected
scheme by the use of prefabricated water-treatment unit
for the programme and circulation of same under RSCs
modules for sand filtration and disinfection was submitted
to obtain basic data for the provision of water and
for funding by the Pradeshiya Sabha.
sanitation facilities;
6. TREATMENT PROCESS IMPROVEMENT OF z preparation of tentative estimates for water and

DIYATALAWA WATER SUPPLY SCHEME sanitation facilities for selected 42 villages under the
The problem of flocs formed in the treatment plant not first phase of the project and co-ordination with the
settling in the sedimentation tank was addressed by the relevant Ministries to obtain the required funds;
introduction of a baffle flocculator and tube settler within
z preparation and distribution of guidelines for provision
the existing sedimentation basin. Construction works are
of water and sanitation facilities among district offices
to be implemented.
of the NWSDB;
7. WATER SAFETY WITH RESPECT TO RIVER z many different types of assistance provided by various
POLLUTION district and provincial offices of the NWSDB to expedite
The danger of pollution of the Kelani River from industrial implementation of the programme; and
waste discharges and garbage dumping was taken up
z funding from the NWSDB for the water supply to the
with the relevant authorities. The Central Environmental
first village under the programme, Jayaminigama in the
Authority has already started mitigatory efforts using a
Moneragala District (this was achieved at a cost of
community-participation approach. This is a positive effort
Rs. 1 million and opened in October 2007).
beyond the ongoing Pavithra Ganga programme.
MISCELLANEOUS
GAMA NAGUMA PROGRAMME
Gama Naguma was a high-priority programme of the
Government. Its objective was to provide infrastructure
facilities to rural villages. Co-ordination of provision of
water and sanitation facilities under the programme was
undertaken by the NWSDB. The Rural Water Supply
Section of the NWSDB handled this task.

New Focus
Report of the Audit and
Management Committee
The Audit and Management Committee, appointed in terms of Public
Finance Circular No. PF/PE/04 of 11.01.2000 to assist the Board of
Management, was functioning during the year under review.
1. Mr. D. Widanagamachchi - Chairman

Board Member
2. Eng. S. K. S. H. K. Suriyaarachchi - Member

Vice Chairman (up to 16.04.2007)
3. Dr. A. Uthumalebbe - Member

Vice Chairman (w.e.f. 25.04.2007)
4. Mr. K. W. D. U. Dahanayake - Member

Board Member (up to 29.01.2007)
5. Dr. C. K. Shanmugarajah - Member

Board Member
6. Mr. M. Wickramage - Member

General Manager (up to 16.05.2007)
7. Mr. K. L. L. Premanath - Member

General Manager (w.e.f. 17.05.2007)
8. Mr. L. S. P. J. de Silva - Member

Additional General Manager (CS)
9. Mr. D. Thotawatte - Member

Deputy General Manager (F)
10. Mr. K. Elangko - Member

Deputy General Manager (IA) (up to 27.01.2007)
11. Mr. W. A. J. Weerasinghe - Member

Actg. Deputy General Manager (IA) (w. e. f. 28.01.2007)
Mr. K. K. Chandrasiri - Secretary
The Audit and Management Committee, comprising the above

members, assembled at the Office of the National Water Supply &
Drainage Board on 1st March 2007, 1st June 2007 and 1st August
2007 under the chairmanship of Mr. D. Widanagamachchi.
The Audit and Management Committee continued its functions

during the year under review in accordance with the revised
Terms of Reference given in Annexure 1 to Public Finance Circular
No. PF/PE/10 of 30th October 2000.

The Committee focused its attention mainly on
strengthening the capacity of the Internal Audit Division
and implementation of the action plan, giving special
emphasis to foreign-funded projects and observations
made in the report of the Auditor General on the annual
financial statements for 2005 and 2006.
At the three meetings held during the year under review,

the Committee perused the documents relating to the
main areas of focus. Deliberations were also focused on
the following core issues, on which audit observations
were made:
z Accounting Deficiencies
z Non-Operative Accounts
z Suspense Accounts
z Foreign-Loan Utilization and Delays in Project
Implementation
z Non-Revenue Water
z Assets and Stores Management System
The observations and recommendations of the Committee

on the above areas were referred to the Board of Directors
for consideration and implementation.

Report of the Audit and Management Committee
Financial Statements
66 Income Statement
67 Balance Sheet
68 Cash Flow Statement
69 Statement of Changes in Equity
70 Segmental Gross Profit - 31st December 2007
71 Notes to the Financial Statements

84 31st December 2007
Income Statement
Revised Budget Actual Actual

For the year ended 2007 2007 2006
Note Rs. Rs. Rs.
Sale of Water 3 7,204,768,000 6,481,915,574 5,869,448,092

Less: Direct Operating Expenses 4 (4,774,782,865) (4,902,547,316) (4,080,524,657)
Operating Profit on Sale of Water 2,429,985,135 1,579,368,258 1,788,923,435

Other Operating Income 5 1,556,448,000 1,129,364,580 1,074,822,450
Administration Overheads 6 (1,716,836,135) (1,762,775,528) (1,348,603,525)
Depreciation 7 (1,053,848,000) (1,381,373,713) (1,100,006,942)
Other Operating Expenses 7 (248,835,000) (139,810,303) (159,864,181)
Profit/(Loss) from Operating Activities 966,914,000 (575,226,705) 255,271,237
Finance Cost 8 (819,000,000) (851,942,058) (511,983,308)

Non-Operating Income 9 130,000,000 203,386,141 114,477,942
Tsunami Losses 10 – – (7,981,932)
Profit/(Loss) from Ordinary Activities before Tax 277,914,000 (1,223,782,622) (150,216,062)

Taxation 11 78,263,000 54,590,568 63,864,173
Net Profit/(Loss) for the year 199,651,000 (1,278,373,190) (214,080,235)
The accounting policies and notes on pages 71 to 83 form an integral part of the financial statements.
Colombo
28th February 2008

Balance Sheet
As at 31st December 2007 2006

Note Rs. Rs.
ASSETS
Non-Current Assets
Property, Plant & Equipment, Net - At Cost 9A 52,406,177,577 42,181,602,353
Capital Work-in-Progress 12 48,291,137,797 47,681,030,625
Investments 14 115,400,688 128,699,746
100,812,716,062 89,991,332,725
Current Assets
Non-Operating Assets 13 191,486,865 191,487,240
Inventories 15 2,601,875,030 2,283,492,046
Trade & Other Receivables 16 6,021,249,894 5,078,885,833
Deposits & Advances 17 2,944,744,662 4,208,785,416
Investments 18 850,475,051 1,649,873,239
Cash & Cash Equivalents 19 484,127,206 207,321,422
13,093,958,709 13,619,845,195
Total Assets 113,906,674,771 103,611,177,920
EQUITY AND LIABILITIES

Capital and Reserves
Assets taken over from Government Department 185,480,387 185,480,387
Equity Capital 48,851,176,568 42,361,254,462
Capital Grants 20 46,507,296,332 43,095,624,266
Capital Recovery Fund 21 1,487,418,856 1,261,237,556
Staff Welfare Fund 11,709,173 11,731,941
Revaluation Reserve 309,763,136 309,763,136
Accumulated Profit/(Loss) (4,555,450,598) (3,050,918,878)
92,797,393,852 84,174,172,872
Non-Current Liabilities
Loan Payable 22 16,525,615,820 15,696,986,667
Other Deferred Liabilities 23 1,731,195,728 1,603,640,105
18,256,811,548 17,300,626,772
Current Liabilities
Creditors 24 1,209,831,339 1,081,162,244
Loan Capital Payable 25 698,582,535 295,283,159
Loan Interest Payable 284,226,156 142,184,781
Non-Operating Liabilities 13 115,455,778 115,455,778
Other Payables 26 544,373,563 502,292,316
2,852,469,371 2,136,378,278
Total Equity and Liabilities 113,906,674,771 103,611,177,921
The Board of Directors is responsible for the preparation and presentation of these financial statements.
S. C. Amarasinghe K. L. L. Premanath D. Thotawatte

Chairman General Manager DGM (Finance)
Colombo
28th February 2008

Cash Flow Statement
For the year ended 2007 2006

Note Rs. Rs.
Cash Flows from/(used in) Operating Activities
Net Profit before Tax (1,223,782,622) (150,216,062)

Adjustments for
Interest Income (203,386,141) (114,477,942)
Depreciation 7 1,381,373,713 1,100,006,942
Profit/Loss on Disposal Assets (10,679,735) –
Retiring Gratuity Provision 139,810,303 103,982,046
Interest Expense 8 851,942,058 511,983,308
Operating Profit before Working Capital Changes 935,277,576 1,451,278,293
(Increase)/Decrease in Inventories (318,382,984) (132,643,726)

(Increase)/Decrease in Debtors, Receivables & Deposits 303,824,324 (1,133,130,682)
Increase/(Decrease) in Creditors & Provisions 371,013,475 174,278,936
Cash Generated from Operations 1,291,732,390 359,782,821
Taxation 11 (54,590,568) (63,864,173)
Gratuity Paid 23.1 (70,476,438) (41,666,035)
Net Cash from Operating Activities 1,166,665,384 254,252,613
Cash Flows from/(used in) Investing Activities

Investments in Fixed Assets (11,547,840,460) (12,973,220,403)
Sale Proceeds for Disposal Assets 12,739,313 –
Investment Income 221,238,885 104,190,281
(Investment)/Withdrawal of Investments 812,697,246 (962,236,894)
Net Cash Flows used in Investing Activities (10,501,165,015) (13,831,267,016)
Cash Flows from/(used in) Financing Activities

Equity Capital during the period 6,489,922,106 6,006,259,544
Foreign Grant during the period 20 3,411,672,066 6,418,465,307
New Loans 1,589,498,022 2,527,437,245
Loan Repayments (357,569,492) (573,486,204)
Loan Interest Paid (1,522,217,286) (1,266,059,529)
9,611,305,415 13,112,616,363
Net Increase in Cash & Cash Equivalents 276,805,784 (464,398,038)
Cash & Cash Equivalents at the beginning of the year 207,321,422 671,719,461
Cash & Cash Equivalents at the end of the period 484,127,206 207,321,422

Statement of Changes in Equity
As at 31st December 2007 Assets from Capital & Capital Revaluation Staff Welfare Accumulated Total
Department Grants Recovery Fund Reserve Fund Profit/Loss
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Balance at 31.12.2005 185,480,387 73,032,153,877 1,059,581,281 309,763,136 11,571,713 (2,635,022,139) 71,963,528,254
Grant received during the year – 12,424,724,852 – – – – 12,424,724,852

185,480,387 85,456,878,729 1,059,581,281 309,763,136 11,571,713 (2,635,022,139) 84,388,253,105
Net Profit/(Loss) for the year – – – – – (214,080,235) (214,080,235)

Transfers to/(from) during the year – – 201,656,275 – 160,228 (201,816,504) –
Balance at 31.12.2006 185,480,387 85,456,878,729 1,261,237,556 309,763,136 11,731,941 (3,050,918,878) 84,174,172,870
Grant received during the period – 9,901,594,171 – – – – 9,901,594,171

185,480,387 95,358,472,900 1,261,237,556 309,763,136 11,731,941 (3,050,918,878) 94,075,767,041
Net Profit/(Loss) for the period – – – – – (1,278,373,190) (1,278,373,190)

Transfers to/(from) during the period – – 226,181,300 – (22,769) (226,158,531) –
Balance at 31.12.2007 185,480,387 95,358,472,900 1,487,418,856 309,763,136 11,709,173 (4,555,450,598) 92,797,393,851
Colombo
28th February 2008

Segmental Gross Profit - 31st December 2007
Sources Activities Water Service Sewerage Ground Water Total
GROSS INCOME
Sale of Water -
Metered Sales 6,417,437,493 – –
Bulk Sales 39,520,159 – –
Bowser Supply 74,958,291 – –
6,531,915,942 – –
Less: Rebates (50,000,368) – –
6,481,915,574
Other Income 273,218,610 70,583,831 19,031,027
6,755,134,183 70,583,831 19,031,027 6,844,749,041
Less: Direct Cost

Personnel Cost -
Permanent 2,165,896,234 95,551,805 29,716,642
Casual 42,217,075 1,299,897 409,920
2,208,113,310 96,851,702 30,126,562 2,335,091,573
Pumping Cost 1,568,167,110 19,129,827 576,390 1,587,873,327
Chemical Cost 346,684,682 2,807,925 – 349,492,607
Repairs & Maintenance 270,661,919 6,906,305 9,466,597 287,034,821
Establishment Expenses 139,823,586 6,667,556 5,521,955 152,013,097
Rent, Rates, Taxes, etc. 177,579,831 13,375,171 86,888 191,041,890
4,711,030,438 145,738,487 45,778,391
Gross Profit for the Year 2,044,103,746 (75,154,656) (26,747,365) 1,942,201,725

Notes to the Financial Statements
1. Corporate Information Two frauds were reported during the year 2006 at two
1.1 General regional offices of NWSDB. According to the investigations
National Water Supply & Drainage Board is a statutory so far carried out, frauds amounting to Rs. 56.49 million
board enacted by the Parliament under the National Water and Rs. 171.94 million were reported at Kelaniya and
Supply & Drainage Board Law No. 2 of 1974. The registered Trincomalee Regional Offices. Legal action has been
office of the Board is located at Galle Road, Ratmalana, instituted against above frauds and investigations are
and the principal place of business is situated at the in progress.
same location.
2.2 Valuation of Assets and their Measurement Bases
2.2.1 Property, Plant & Equipment (SLAS 18)
National Water Supply & Drainage Board is an institution that
i. Cost
is under the purview of Ministry of Water Supply & Drainage.
Cost of Properties, Plant & Equipment is the cost of acquisition
1.2 Principal Activities and Nature of Operations or construction together with any expenses incurred in bringing
the assets to its work in condition for its intended use. Where
During the year, the principal activity of the Board was to be
an item comprises major components having different useful
produce and sell treated drinking water to the community.
lives, they are accounted for as separate items of Property,
1.3 Number of Employees Plant & Equipment. This accounting treatment covers the grant-
The number of permanent and contract employees, funded project and other projects too.
as at the end of the year were 8,460 (2006 - 8,350). The

number consists of those who were paid salaries as at ii. Leasehold Assets (SLAS 19)
31st December 2007. Leasehold land is amortized over the period of lease and the
amortized amount is charged to Income Statement for the
2. Summary of Significant Accounting Policies relevant period.
2.1 General Accounting Policies
2.1.1 Statement of Compliance iii. Subsequent Expenditure Incurred on Assets
The financial statements of NWSDB have been prepared in Expenditure incurred to replace the component of an item of
accordance with Sri Lanka Accounting Standards (SLAS), Properly, Plant & Equipment that is accounted for separately,
adopted by the Institute of Chartered Accountants of Sri Lanka. incurring major inspection and overhaul expenditure. Other
subsequent expenditure is capitalized only when it increases
2.1.2 Basis of Preparation the future economic benefits embodied in the item of Property,
The financial statements are presented in Sri Lankan Rupees Plant & Equipment. All other expenditure is recognized in the
and prepared on the historical cost basis and the accounting Income Statement as an expense as included.
policies are consistent with those used in the previous years.
iv. Restoration Costs
The Board of Directors has made an assessment of the Expenditure incurred on repairs and maintenance of
ability of NWSDB to continue as a going concern in the Property, Plant & Equipment in order to restore or maintain
foreseeable future. the future economic benefits expected from originally
assessed standards of performance is recognized as an
2.1.3 Event of the Balance Sheet Date (SLAS 12)
expense when incurred.
All material events occurring after the Balance Sheet date
have been considered and where necessary adjustments
made in these financial statements.

v. Depreciation (SLAS 8) 2.2.2 Inventories (SLAS 5)
The provision of depreciation is calculated by using a straight Inventories mainly consist of materials that are held for use in
line method on the cost of all Property, Plant & Equipment other the production of water and materials that are required for to
than freehold land, in order to write-off such amounts over the maintain water supply schemes. The inventories are shown at
estimated useful lives by equal instalments. The principal rates cost and cost is arrived by using weighted average method.
used are as follows:
2.2.3 Trade and Other Receivables (SLAS 15)
Infrastructure - 2% Trade receivables are stated at the amounts they are
Buildings - 2% estimated to realize net of provisions for bad and doubtful
Structures - 1.67% debts. Other receivables and dues from Related Parties
Treatment Plant Equipment - 5% are recognized at cost less provision for bad and doubtful
Transmission Plant Equipment - 1.67% receivables. The allowance for bad and doubtful debts is based
Survey Equipment - 10% on specific debtors who are considered as non-recoverable.
Laboratory Equipment - 10%
Furniture, Fittings & Other Equipments - 10% 2.2.4 Cash & Cash Equivalents (SLAS 9)
Passenger Vehicles - 14.3% Cash & cash equivalents are defined as cash on hand, cash
Heavy Vehicles - 10% in transit and current account balances in banks.
Service & Bulk Meters - 10%
2.3 Investments (SLAS 22)
No depreciation has been provided on freehold land. Full Investments are stated at cost of acquisition. Income is
provision is made in the year of purchase and none in the recognized on accrual basis for interest/yield deriving
year of disposal. investments and to the extent of distribution from dividend
bearing investments.
vi. Rehabilitation Costs
Expenditure incurred on augmentation and rehabilitation of (a) Long-Term Investment
Property, Plant & Equipment in order to enhance the future Long-Term Investments are the investments made in relation
economic benefits expected from originally assessed standards to more than one year period. Then investments have been
of performance is recognized as capital expenditure. disclosed as notes to the accounts Number 13.
vii. Government Grants (SLAS 24) (b) Short-Term Investment

SLAS 24 specifically does not apply organizations that Short-Term Investments are the investments made a short-
have substantial ownership by the Government. As National term period for the purpose of organizational activities.
Water Supply & Drainage Board is fully owned Government
2.4 Liabilities and Provisions
Institution, SLAS 24 is excluded in application of this
Standard. However, grant received other than Government Liability
is considered in financial reporting of this Board. Liabilities are classified as current liabilities on the Balance
Sheet date are those which fall and due for within one year
from the Balance Sheet date. Non-current liabilities are
These grants are used to build up assets. Amount of
those balances that fall due for payments later than one year
depreciation of the assets is charged to relevant Grant
from Balance Sheet date.
Accounts on systematic basis over the useful lives of the
related assets.
All known liabilities have been accounted for in preparation
of financial statements.

2.4.1 Retirement Benefit Obligations (SLAS 16) (b) Contingent Liabilities and Commitments
(a) Defined Benefit Plan - Gratuity In the opinion of the Board of Directors and legal officers
Provision has been made for retiring gratuities from the pending litigation against the Board will not have a material
first year of service for all employees, in conformity with Sri impact on the reported financial results of the further
Lanka Accounting Standard No. 16 (SLAS 16). operation of the Board.
Retirement Benefit Cost All commitments has been specially disclose in the Note No. 27
However, under the payment of gratuities Act No. 12 of to the financial statements.
1983, the liability to an employee arises only on completion
of 5 years of continued service. Gratuity is a defined benefit 2.5 Trade and Other Payables (SLAS 15)
plan. The advice of an actuary has not been obtained in Trade and other payables are stated at the cost.
accounting for defined benefit plan. The resulting difference
between brought forward provision at the beginning of the 2.6 Income Statement
year and the carried forward provision at the end of the year 2.6.1 Revenue Recognition (SLAS 29)
is dealt within the Income Statement. Revenue is recognized to the extent that it is probable that
the economic benefits will flow to the Board and the revenue
Defined Contribution Plans - EPF & ETF and associated costs incurred or to be incurred can be
Employees are eligible for Employees’ Provident Fund reliably measured. Revenue is measured at the fair value of
Contributions and Employees’ Trust Fund Contributions in line the consideration received or receivable net of rebates.
with respective Statutes and Regulations. The Board contributes The following specific methods are used for the purpose of
12% and 3% of gross emoluments of employees to EPF and recognition of income.
ETF respectively. Total contribution of the Board for the period,

EPF - Rs. 342,266,906/- and ETF - Rs. 85,564,741/-. (a) Sale of Water (Normal Water Sales)
Revenue from sale of water is recognized when the meters
Provision are read and when bills are processed within the system.
Provision is recognized in the Balance Sheet when the

Board has the legal or constructive obligation as a result of (b) Other Operating Income
past event and it is probable that an out flow of economic Other operating income including new connection income is
benefits will be required to settle the obligations. recognized on cash basis.
(a) Provision for Bad Debts The revenue and expenses of the construction contracts are
Following percentages are applied for provision of recognized by reference to the stage of completion of the
bad debts. contract activities at the Balance Sheet date. (SLAS 13).
5% - Arrears over 2-24 months

(c) Interest Income
15% - Stand post Arrears
Interest income is recognized as the interest/yield accrues
- Disconnected Arrears
unless the collectibles is in doubt.
- Arrears over 1 year
- Sewerage Arrears
(d) Dividends
20% - CMC Debtors
Dividend income is recognized on cash basis.
25% - Debtors Account 219
Other than the above percentages 10% applied as general

provision for water debtors.

2.6.2 Expenditure Recognition (c) Finance Cost
(a) Expenses are recognized in the Income Statement The finance cost comprises interest payable on
on the basis of a direct association between the cost borrowings other than borrowing cost capitalized
incurred and the earning of specific items of income. ongoing projects.
All expenditure incurred in the running of the business
and in maintaining the Property, Plant & Equipment (d) Taxation
in a state of efficiency has been charged to income in Economic Service Charge and Income Tax paid during
arriving at the profit of the year. the year as per Inland Revenue Act No. 38 of 2000
have been charged under taxation.
Repairs and renewals are charged to Income Statement
in the year in which the expenditure is incurred.
(b) Borrowing Costs (SLAS 20)

Borrowing costs are recognized as an expense in
the period in which they are incurred. The borrowing
costs on the fund specifically obtain for ongoing capital
projects have been capitalized and included in the
carrying amount of the projects.

31.12.2007 31.12.2006
Rs. Rs.
3. Sale of Water
Metered Sales 6,417,437,493 5,793,621,585
Bulk Sales 39,520,159 79,253,182
Bowser Supply 74,958,291 45,075,177
Less: Rebates (50,000,368) (48,501,852)
6,481,915,574 5,869,448,092
4. Direct Operating Expenses

Personnel cost 2,335,091,573 1,829,346,805
Pumping Cost 1,587,873,327 1,360,669,505
Chemicals 349,492,607 319,570,787
Repairs & Maintenance 287,034,821 256,858,175
Establishment Expenses 152,013,097 137,637,825
Rent, Rates, Taxes, Security & Other Expenses 191,041,890 176,441,560
4,902,547,316 4,080,524,657
5. Other Operating Income

Capital Recovery Charges 226,181,300 201,656,275
New Connection Income (Net) 237,836,696 282,430,769
Fees & Other Charges 646,012,718 574,857,926
Bad Debt Over Provision 21,653,200 –
Revenue Grants (2,319,334) 15,877,480
1,129,364,580 1,074,822,450
6. Administration Overheads
Personnel Cost 1,135,611,518 982,823,544
Repairs & Maintenance 69,864,240 95,828,699
Establishment Expenses 224,065,860 216,240,180
Rent, Rates, Taxes, Security & Other Expenses 333,233,910 53,711,102
1,762,775,528 1,348,603,525
7. Other Operating Expenses

Depreciation
Infrastructures 8,324,931 1,072,353
Buildings 119,652,153 86,685,152
Water Supply Scheme Structures 214,837,137 91,086,551
Plant & Machinery - Pumping & Treatment 590,085,268 374,676,899
Service/Bulk Meters 7,505,742 3,627,759
Plant & Equipment - Distribution & Transmission 455,852,209 320,700,147
Mobile Equipment 7,174,870 7,467,166
Survey Equipment 608,270 229,597

31.12.2007 31.12.2006
Rs. Rs.
Laboratory & Other Equipment 118,239,488 88,656,865

Furniture Fittings & Office Equipments 39,546,598 28,975,776
Passenger Cars 6,063,599 2,188,581
Vans, Buses & Jeeps 9,337,336 7,162,973
Lorries & Trucks 36,992,745 38,758,307
Tractors & Trailers 1,066,802 1,024,827
Water Bowsers & Heavy Vehicles 97,520,057 46,990,172
Motor Cycles 945,430 652,629
1,713,752,637 1,099,955,754
Amortization of Leasehold Land 51,188 51,188
Total Depreciation 1,713,803,825 1,100,006,942
Less: Depn. for Grant Funded Assets (332,430,112) –
1,381,373,713
Bad & Doubtful Debts – 52,898,160
Retiring Gratuity 139,810,303 103,982,046
Irrecoverable Debt – 2,983,975
2,902,557,728 1,259,871,124
8. Finance Cost
Loan Description
IDA 1700 60,756,605 51,890,086
IDA 1041 24,421,417 –
French - Trincomalee 2,932,019 2,932,083
French - Negombo I 1,197,585 1,197,585
French - Negombo II 1,377,469 1,377,469
French - Kurunegala 1,824,954 1,824,954
French - Badulla 2,197,378 2,197,378
French - Ambatale 54,986,528 57,175,454
ADB 817 78,816,161 66,676,993
UDA ADB – 2,036,791
ODA 1,082,897 5,224,995
ADB 1235 98,840,471 83,556,806
ADB 1575 150,627,615 157,135,211
USAID 681,956 751,899
ODA Matara-Nilambe 43,836,337 39,006,909
OECF SLP 19 35,681,363 38,236,877
OECF SLP 37 112,408,778 93,673,982
OECF SLP 49 259,298,195 182,331,730
OECF SLP 55 401,667,221 343,264,130
OECF SLP 71 72,842,817 61,032,868

31.12.2007 31.12.2006
Rs. Rs.
OECF SLP 66 9,435,080 8,225,012

Kalmunai 1,583,501 1,707,696
KfW - Nawalapitiya/Ampara/Koggala 25,932,416 14,228,984
EDCF - Greater Galle Korean I 54,163,834 54,163,834
EDCF - Greater Galle Korean II 20,388,139 9,579,648
SFD 1/30 – 7,040,114
ADB 1757 5,179,749 5,202,728
ADB 1993 26,159,085 5,822,411
Nuwara-Eliya - DANIDA 13,262,358 856,221
Kandy South - DANIDA 33,365,095 11,122,642
Greater Trincomalee 2,657,517 –
Ambalangoda/Weligama/Kataragama 12,756,692 9,081,625
Local loans 1,239,781 1,311,404
Less: Capitalized Interest on Construction Projects

OECF SLP 49 – (182,331,730)
ADB 1575 (150,627,615) (157,135,211)
OECF SLP 55 (401,667,221) (343,264,130)
OECF SLP 71 (72,842,817) (61,032,868)
KfW - Nawalapitiya/Ampara/Koggala (25,932,416) (14,228,984)
EDFC - Greater Galle Korean II (20,388,139) (9,579,648)
OECF SLP 66 – (8,225,012)
ADB 1757 – (5,202,728)
ADB 1993 (26,159,085) (5,822,411)
Nuwara-Eliya - DANIDA (13,262,358) (856,221)
Kandy South - DANIDA (33,365,095) (11,122,642)
Greater Trincomalee (2,657,517) –
Ambalangoda/Weligama/Kataragama (12,756,692) (9,081,625)
851,942,058 511,983,308
9. Other Non-Operating Income

Investment Income 203,386,141 114,477,942

78
9 A Schedule of Fixed Assets as at 31.12.2007
Rate Cost of Addition Transfers/ Disposals Cost of Fixed Fully Depreciable Depreciation Depreciation Depreciation Depreciation Amortization Fixed Assets
Description of Fixed Assets During Adjustment Assets as at Depreciated Assets 01.01.2007 for Disposals/ for Year 2007 as at for Year Written Down
Dep. as at the Year 31.12.2007 Items Adj. for 31.12.2007 2007 Value
01.01.2007 (G) Depreciation (J) (K) (L) 31.12.2007
(A) (B) (C) (D) (A+B-C-D) (F) (E-F) (H) (I) (GX Rate) (H-I+J) (E-K-L)
Annual Report 2007

Land - Freehold 993,439,938 200,635,271 12,277,791 1,181,797,417 1,181,797,417 1,181,797,417
Land - Leasehold 5,898,131 5,898,131 5,898,131 51,187.42 5,846,944
Infrastructure 2% 99,727,611 318,718,953 418,446,564 2,200,000 416,246,564 5,392,402 8,324,931 13,717,333 404,729,231
Building - Freehold 2% 5,322,292,097 666,385,073 6,069,501 5,982,607,669 5,982,607,669 953,031,553 119,652,153 1,072,683,706 4,909,923,963
Structures 1.67% 10,660,571,279 2,220,533,314 16,605,397 12,864,499,196 12,864,499,196 1,069,238,830 214,837,137 1,284,075,967 11,580,423,229

Plant & Eq. Pumping
Treatment 5% 9,882,001,533 2,517,104,268 14,216,069 12,384,889,733 583,184,369 11,801,705,364 3,081,929,856 590,085,268 3,672,015,124 8,712,874,608
Service Meter 10% 30,547,385 – 30,547,385 25,397,642 5,149,743 30,336,695 210,690 30,547,385 –
Bulk Water Meter 10% 34,025,331 38,925,188 72,950,518 72,950,518 8,912,522 7,295,052 16,207,574 56,742,945
Plant & Eq: Trans. &
Distribution 1.67% 21,759,030,756 5,623,729,688 86,220,986 27,296,539,458 27,296,539,458 2,962,627,343 455,852,209 3,418,479,552 23,878,059,906
Mobile Equipment 10% 123,680,972 9,036,559 75,800 132,641,731 60,893,030 71,748,701 105,661,448 7,174,870 112,836,318 19,805,413
Survey Equipment 10% 6,146,558 2,143,336 8,289,895 2,207,196 6,082,699 4,437,823 608,270 5,046,093 3,243,802
Laboratory 10% 91,909,776 9,400,348 137,984 101,172,140 16,522,478 84,649,662 41,755,460 8,464,966 50,220,426 50,951,714
Other Equipment 10% 1,081,325,932 256,207,244 709,995 1,336,823,182 239,077,961 1,097,745,221 675,442,154 109,774,522 785,216,676 551,606,506
Furniture & Fittings 10% 369,693,046 107,348,985 1,415,915 475,626,116 80,160,133 395,465,983 215,485,153 39,546,598 255,031,751 220,594,364
Motor Vehicles, Cars 14.3% 61,449,541 3,753,045 744,908 64,457,677 22,054,886 42,402,791 40,671,257 744,908 6,063,599 45,989,948 18,467,729
Van, Busses & Jeeps 14.3% 141,386,070 9,994,999 2,163,217 149,217,852 83,921,796 65,296,056 109,185,856 2,163,217 9,337,336 116,359,975 32,857,877
Lorries & Trucks 10% 533,204,036 57,498,624 22,664,931 568,037,730 198,110,275 369,927,455 346,607,863 20,621,553 36,992,745 362,979,056 205,058,674
Tractors & Trailers 10% 23,610,622 250,000 190,000 23,670,622 13,002,605 10,668,017 14,750,650 190,000 1,066,802 15,627,452 8,043,170
Water Bowsers,
Heavy Vehicles 10% 1,044,671,835 34,441,073 1,637,039 1,077,475,869 102,275,301 975,200,568 420,555,416 1,637,039 97,520,057 516,438,434 561,037,435
Motor Cycles 14.3% 7,039,903 2,045,669 40,001 9,045,572 2,434,175 6,611,397 4,027,489 40,001 945,430 4,932,918 4,112,654
TOTAL 52,271,652,352 12,078,151,638 137,729,438 27,440,096 64,184,634,456 1,431,441,847 62,753,192,609 10,090,049,771 25,396,718 1,713,752,636 11,778,405,688 51,187 52,406,177,580
31.12.2007 31.12.2006
Rs. Rs.
10. Tsunami Losses

Charged to P & L A/C – 7,981,932
11. Taxation
Economic Service Charge 54,330,131 56,326,640
Income Tax 260,437 7,537,533
54,590,568 63,864,173
12. Capital Work-in-Progress

Construction Work 38,833,719,555 35,920,279,955
Rehabilitation 9,457,418,243 11,760,750,670
48,291,137,797 47,681,030,625
13. Non-Operating Assets 191,486,865 191,487,240

Non-Operating Liabilities 115,455,778 115,455,778
76,031,087 76,031,462
Note: Non-operating balances consists of aggregate of balances which are outstanding for a long period of time. The
assignment to reconcile these balances have been awarded to an accountancy firm in January 2004, and report has
been submitted. This report is reviewed by an Audit and Management Committee and direct to do a reconciliation by the
employee’s with an incentive scheme.
14. Investments
HDFC Shares 208,742 200,000
HDFC Investment for Staff Housing Loans 113,009,032 126,476,806
Bank of Ceylon Saving - I 1,426,427 1,321,152
Bank of Ceylon Saving - II 756,487 701,788
115,400,688 128,699,746
15. Inventories
Stock at Main stores 323,340,699 300,647,626
Stock at Sites Stores 2,273,763,807 1,973,563,131
Goods in Transit 4,770,524 9,281,289
Total Inventories at Cost 2,601,875,030 2,283,492,046
16. Trade & Other Receivables

Advance to Staff - Travelling 512,654 640,642
Advance to Staff - Salaries 299,220 278,094
HDFC Receivable 22,770 24,270
Festival Advances 10,165,129 9,413,679
Advance to Staff - Flood Relief 4,375 858,631

31.12.2007 31.12.2006
Rs. Rs. Rs.
Loans to Employees - Distress 676,441,361

Less: Irrecoverable Employee Debts Provision (569,679) 675,871,683 747,351,709
Loans to Employees - Vehicle 22,560,823 24,333,519
Loans to Employees - Special Advance 130,734 138,345
Loans to Employees - Tsunami 5,449,925 7,442,615
Casual Salary - Advances 391,825 2,068,236
Special Incentive Advances 28,185,204 27,838,326
VAT Receivable 163,257,008 115,531,477
VAT Receivable from Inland Revenue 3,214,606,143 2,277,052,201
Trade Debtors - Water 1,863,177,689
CMC Debtors 28,519,949
Sewerage Debtors 85,429,317
Other Debtors 61,582,382
2,038,709,337
Less: Provision for Bad Debts (325,793,039) 1,712,916,298 1,674,731,214
Debtors Collection Control 196,871,220 162,351,317
Suspense Debtors 71,292 71,292
Receivable on Interest & Others 7,664,372 25,517,116
Instalment Debtors - New Connection 10,686,298 15,301,916
Instalment Debtors - N/C (Low Income) (30,120,513) (16,408,768)
Stock Adjustments 1,703,434 –
School/Religious Grant Receivable – 4,350,000
Inter-Regional Current Accounts – –
6,021,249,894 5,078,885,833
17. Deposits and Advances

Rechargeable Project Work 460,109,956 541,810,408
Advance to Suppliers 14,034,552 11,484,135
Advance to Contractors 69,799,318 171,518,029
Cash Advances - Head Office 4,609,069 2,570,937
Cash Advances - Regions 3,278,104 3,162,398
Other Advances 6,450,000 6,450,000
Advance to Contractors (Local Contract) 775,983,181 720,921,248
Advance for Contractors (Special Projects) 1,519,330,608 2,442,311,714
Pre-Payments 56,568 226,073
Special Dollar Account 1,198,086 225,131,112
Other Short-Term Deposits 77,880,267 70,313,319
Employees’ Security Deposits 3,548,090 4,045,677
Electricity Deposits 8,400,097 8,773,597
Telephone Deposits 66,767 66,767
2,944,744,662 4,208,785,416

31.12.2007 31.12.2006
Rs. Rs.
18. Investments
Treasury Bills 13,278,020 –
Fixed Deposits 609,999,999 1,537,043,411
Savings Account with People’s Bank - Ratmalana 46,858 44,312
Savings Account with Bank of Ceylon - Ratmalana 46,717 44,333
Savings Account with Bank of Ceylon - Dehiwela 2,527,626 12,121,393
Savings Account with Bank of Ceylon - Dehiwela 224,575,831 100,619,789
850,475,051 1,649,873,239
19. Cash & Cash Equivalents

Main Current Accounts 120,009,408 (42,335,561)
New Connection Accounts 18,919,448 44,072,288
Main Collection Account 168,220,020 132,982,041
Internal Cash Transfer Account 14,209,602 22,689,256
Cash Imprest - Head Office 930,395 1,785,713
Sub Collection Accounts 7,049,570 11,345,160
Cash Imprest Regions 86,126,960 786,614
Cash in Transit 71,860,839 59,870,226
Cash Balance at the end 487,326,240 231,195,737
Adjust:
New Connection Control Account (8,662,290) (45,907,241)
Water Bill Collection Control Account 5,463,257 22,032,926
Cash & Cash Equivalents 484,127,206 207,321,422
20. Capital Grants

Central Government 46,168,794,373 42,757,122,308
Local Government 338,501,958 338,501,958
46,507,296,332 43,095,624,266
21. Capital Recovery Fund

Balance at beginning of the year 1,261,237,556 1,059,581,281
Amount Appropriated during the year 226,181,300 201,656,275
1,487,418,856 1,261,237,556
22. Loan Payable

Foreign Loans Through Treasury 15,904,683,652 15,076,361,020
Local Loans 126,196,593 125,890,072
Interest Payable 494,735,575 494,735,575
16,525,615,820 15,696,986,667

31.12.2007 31.12.2006
Rs. Rs.
23. Other Deferred Liabilities

Retiring Gratuity Provision 1,131,855,622 1,062,521,758
Customer and Employee Security Deposits 599,340,105 541,118,348
1,731,195,728 1,603,640,105
23.1 Movement of Retiring Gratuity Provision

Balance at the beginning of the period 1,062,521,757 1,000,205,746
Add: Provision for the period 139,810,303 103,982,046
1,202,332,060 1,104,187,792
Less: Gratuity Payments during the period (70,476,438) (41,666,035)
1,131,855,622 1,062,521,758
24. Creditors
Rechargeable Work - Customer Advances 741,066,379 754,490,939
440, 444 - Contractors Retention 468,764,960 326,671,305
1,209,831,339 1,081,162,244
25. Loan Capital Payable in 2007

IDA 1041 95,841,020 46,942,169
French - Trincomalee 10,278,232 10,288,012
French - Negombo I 2,518,733 2,521,231
French - Negombo II 2,245,018 2,188,843
French - Kurunegela 1,548,530 1,553,153
French - Badulla 2,040,240 2,044,073
French - Ambatale 40,282,538 40,215,760
ADB 817 84,613,155 36,822,283
IDA 1700 60,232,380 23,818,284
OECF - SLP 19 28,110,654 1,277,758
Kalmunai - Australia 1,261,156 1,241,960
USAID 3,487,486 3,497,205
ADB 1235 49,420,235 9,151,896
SLP 37 162,911,275 108,607,516
UDA - ADB – 1,380,875
OECF - SLP 49 110,403,550 –
OECF - SLP 66 11,157,760 –
ODA - Hill Country 7,464,278 3,732,138
Matara/Nilambe (ODA) 24,766,294 2
698,582,535 295,283,159

31.12.2007 31.12.2006
Rs. Rs.
26. Other Payables

Creditors Control 103,329,709 84,926,505
VAT Payable 109,339,577 96,968,185
Security Deposit 371,028 246,028
Other Creditors 34,053,600 23,214,947
Refundable Tender Deposit 16,211,558 19,109,332
Salary Payables 116,366,129 77,051,769
Withholding Tax 4,760,009 2,842,551
Withholding VAT 32,226,300 –
Accrued Expenses 124,909,848 194,526,208
Provision for Cash Losses 1,075,000 1,075,000
Stock Adjustment – 600,986
Other Payables 1,730,805 1,730,805
544,373,563 502,292,316
27. Capital Commitments

The committed Capital Expenditure for 2008 is Rs. 27,799 million for which the Government of Sri Lanka has allocated
funds in the National Estimates.
28. Outstanding Litigation

In the opinion of the Directors and the Legal Officers pending litigation against the Board will not have a material impact on
the reported financial results of the future operations of the Board.
29. Post Balance Sheet Events

No events have occurred since the Balance Sheet date necessitating adjustments or disclosure in the accounts.
30. Directors’ Interests in Contracts

No Director of the Board has a direct or indirect interest in the contracts of the Board.
31. Comparative Information

Prior year’s figures have been restated where necessary to confirm to the current year’s presentation.
32. Directors’ Responsibility

The Directors take responsibility for the preparation and presentation of financial statements.

31st December 2007
TH/G/NWS&DB/07 basis of evidence supporting the amounts and disclosures in
12th August 2008 financial statements and assessment of accounting principles
used and significant estimates made by the management in
The Chairman the preparation of financial statements as well as evaluating
National Water Supply & Drainage Board their overall presentation. I have obtained sufficient information
and explanations which to the best of my knowledge and belief
Report of the Auditor General on the Financial were necessary for the purpose of the audit. I therefore believe
Statements of the National Water Supply & Drainage
that my audit provides a reasonable basis for my opinion.
Board for the year ended 31st December 2007, in terms
Subsections (3) and (4) of the Section 13 of the Finance
of Section 14 (2) (c) of the Finance Act. No 38 of 1971
Act No. 38 of 1971 give discretionary powers to the Auditor
The audit of Financial Statements of the National Water
General to determine the scope and extent of the Audit.
Supply & Drainage Board (NWS&DB) for the year ended
31st December 2007, was carried out under my direction in
2. Financial Statements
pursuance of provisions in Article 154 (1) of the Constitution
2.1 Opinion
of the Democratic Socialist Republic of Sri Lanka read in
So far as appears from my examination and to the best of
conjunction with Section 13 (1) of the Finance Act No. 38 of
information and according to the explanations given to me,
1971. My comments and observations which I consider should
I am of opinion that the National Water Supply & Drainage
be published with the annual report of the Board in terms of
Board had maintained proper accounting records for the year
Section 14 (2) (c) of the Finance Act appear in this report.
ended 31st December 2007 and except for the effects on the
1.2 Responsibility of the Management for the financial statements of the matters referred to in paragraph
Financial Statements 2.2 of this report, the financial statements have been prepared
Management is responsible for the preparation and fair in accordance with Sri Lanka Accounting Standards, give a
presentation of these financial statements in accordance true and fair view of the state of affairs of the NWS&DB as at
with Sri Lanka Accounting Standards. This responsibility 31st December 2007 and the financial results of its operation
includes: designing, implementing and maintaining internal and cash flows for the year then ended.
control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatements, 2.2 Comments on Financial Statements
2.2.1 Sri Lanka Accounting Standards
whether due to fraud or error: selecting and applying
Non-compliance with the following accounting standards
appropriate accounting policies; and making accounting
were observed in audit:
estimates that are reasonable in the circumstances.
(i) SLAS - 5
1.3 Scope of Audit and Basis of Opinion (a) Under Accounting Policies 2.2.2 of the financial
My responsibility is to express an opinion on these financial statements it was disclosed that the weighted average
statements based on my audit. Audit opinion, comments and method had been used in determining the cost of
findings in this report are based on review of the financial inventory. However, it was observed that the last
statements presented to audit and substantive tests of samples purchase price or prices quoted in the Engineers,
of transactions. The scope and extent of such review and Rate Books had been used in certain instances.
tests were such as to enable as wide and audit coverage as (b) A provision had not been made for the unusable stocks
possible within the limitations of staff, other resources and time valued at Rs. 14,736,704.
available to me. The audit was carried out in accordance with
(c) The stock in hand as at 31st December 2007 had not
Sri Lanka Auditing Standards to obtain reasonable assurance
been classified and shown in the financial statements.
as to whether the financial statements are free from material
misstatements. The audit include the examination on a test

(ii) SLAS - 9 (b) Expenses related to grants had been set off against
In determining the cash flow from financial activities, the the revenue grants received during the year under
amortization of the Government grants amounting to review and the net amount had been shown as
Rs. 332,430,112 had not been taken into consideration. revenue grants instead of showing separately.
Instead the net effect of the Government grants had been
taken into cash flow statement. 2.2.2 Accounting Deficiencies
(a) Following deficiencies were observed in respect of
(iii) SLAS - 10 the value of stocks amounting to Rs. 2,601,875,030
The nature, reason and the effects to the financial statements appearing in the financial statements:
had not been disclosed in the accounts in respect of the
(i) Shortages and excesses of stocks identified at
change of accounting policies adopted on the provision for
the annual physical verification valued at
doubtful debts.
Rs. 93,948,839 and Rs. 42,558,779 respectively
(iv) SLAS - 16 had not been taken into account in respect of 91
Fair value of the assets related to gratuity provision as at regional stores.
the balance sheet date had not been disclosed in the
(ii) Stocks in the Investigation unit valued at
financial statements.
Rs. 59,755,699 had not been taken into accounts
for the year under review.
(v) SLAS - 18
(a) It was observed that vehicles and office equipment (iii) Stocks valued at Rs. 15,274,789 in respect of
purchased at a cost of Rs. 123,640,923 under the nine stores had not been physically verified as at
Secondary Towns Rural Community Based Water the balance sheet date.
Supply and Sanitation Project had been shown under
capital work-in-progress without being depreciated (b) Test check revealed that the Capital Work-in-Progress
even though such assets had been utilized for valued at Rs. 48,291,137,797 appearing in the financial
operational activities. statements had not been fairly stated due to following
shortcomings:
(b) Provision for depreciation had been made in the year
of purchase fully and no provision had been made in (i) Water Supply Schemes already completed at
the year of disposal instead of making provision at a total cost of Rs. 5,002,168,187 had not been
the date of purchase up to the date of disposal of the eliminated from this account by transferring it to
assets, in terms of the provision in SLAS - 18. relevant property plant and equipment accounts
though these schemes had already been handed
(vi) SLAS - 20
over to the Board. Further, it was observed that
Though several water supply schemes and capital
the depreciation relating to those assets had not
construction works implemented under foreign loans had
been provided for the year under review due to
been completed and being in use the interest portion
non-capitalization.
thereon related to these works had continuously been
capitalized instead of being charged against income for the (ii) Although sub projects and Small towns water
year under review. supply schemes constructed under the Third Water
Supply and Sanitation Sector Project at a cost of
(vii) SLAS - 24 Rs. 2,199 million had already been handed over
(a) Government grant related to assets had not been to the respective Community Based Organizations
disclosed at fair value and it was shown in the balance (CBOs), the value of these schemes had been
sheet as at 31st December 2007 by deducting the shown under capital work-in-progress continuously.
grants in arriving at the carrying amount of the assets.

Auditor General’s Report for the year ended 31st December 2007
(iii) Negative balances aggregating Rs. 1,685,280,906 be satisfied in audit regarding the computation of the
had been shown in the accounts in respect of two interest charges and whether all liabilities relating
sub offices which is unrealistic. to borrowings had properly been accounted for in
the accounts.
(c) Loan Interest amounting Rs. 494.7 million payable to
(d) Capital repayment in respect of four loans had not been
the Treasury for the period of 1994 to 2002 in respect
started as at the date of this report in accordance with the
of loans had been shown under long-term loan payable
provisions stated in the subsidiary financing agreements.
instead of showing under current liabilities.
(e) Differences amounting to Rs. 352,991 and
(d) A test check revealed that expenses amounting to
Rs. 30,399,090 had been observed between the
Rs. 478.6 million incurred on two Foreign Funded
project accounts of Greater Kandy and NWS&DB
Projects which had later been abandoned had
accounts in respect of loans and grants respectively.
continuously been shown under capital work-in-progress.
(f) Grants amounting to Rs. 70,401,140 received from the
(e) 220 vehicles received from various donor agencies
Government of Saudi Arabia for SFD 1/130 Project had
for the tsunami rehabilitation activities had not been
erroneously been classified as loan instead of grant
valued and taken into account. It was also observed
and interest thereon amounting Rs. 69,353,062 had
that only the customs duty paid by the Board
also been provided in the accounts.
amounting to Rs. 391.4 million had been capitalized.
(f) Value Added Tax expenses incurred by the Board on 2.2.4 Unreconciled Control Accounts
behalf of customers had been overstated by The following balances in the control accounts had not
Rs. 9,228,774 due to erroneous computation. been reconciled with the corresponding subsidiary records,
schedules etc. as at 31st December 2007.
(g) Sales and bad debts for the year under review had
been understated by Rs. 4,032,723 due to incorrect Description of Amount as per Amount as per Difference
Control Accounts Control Subsidiary
accounting in respect of Anuradhapura Region. Accounts Records
Rs. Rs. Rs.
2.2.3 Deficiencies in the activities relating to
Foreign Loans Trade Debtors 1,863,177,689 1,939,627,455 76,449,766
Following observations are made: Advances and

loans to staff
(a) The Treasury had clearly instructed not to apply the Travelling 318,338 290,600 27,738
reduced interest rate of 10% to the existing loans as Festival 10,165,129 10,059,336 105,793
at 1st January 1998. However, the Board had applied Distress 658,999,051 659,457,452 458,401
the reduced interest rate for such loans instead of Vehicle 22,560,683 22,580,420 19,737
the interest rate mentioned in the loan agreements in Advances to Suppliers 3,208,529 3,121,143 87,386
respect of three loans thus understating the finance Cash in Transit 71,860,839 71,761,490 99,349
charges for the year 2007 by Rs. 6,566,690. VAT Receivables
(Colombo City) 933,442 962,920 29,478
(b) A difference of Rs. 56,702,044 had been observed
Retention 442,653 249,689 192,964
between the NWS&DB accounts amounting to
Rs. 1,647,832,234 and Treasury accounts amounting
2.2.5 Non-Operating and Suspense Balances.
to Rs. 1,591,130,190 as at the balance sheet date in
(a) Service of a firm of chartered accountants had been
respect of two Foreign Loans.
obtained at a cost of Rs. 1,035,000 to reconcile the
(c) Subsidiary loan agreements in respect of 14 loans long outstanding debit balances aggregating
aggregating Rs. 4,100,063,601 had not been made Rs. 191,486,865 and credit balances aggregating
available for audit. It was therefore not possible to Rs. 115,455,778 as at the balance sheet date. However,

it was observed that action had not been taken to 12% in December 2007. Therefore, such ratios had
implement the proposals made by the firm of Chartered not been declined significantly even though control
Accountants and the Board had later decided to carry procedures had been adopted to monitor the situation.
out further reconciliation of these balances. However, it was observed that such ratios were at high
level due to delays in taking meaningful action to avoid
(b) A difference of Rs. 1,758,300 between physically verified
some of the controllable factors as described below.
stock balances and the ledger balances for the year
under review and previous years had been transferred to Reason No. of Connections where
Bills Issued on Estimations
stock adjustment account without being investigated.
April 2007 December 2007
2.2.6 Identified Losses Defective Meters 23,804 27,098

It was reported that cash frauds amounting to Rs. 171.9 Inaccessibility to the Premises 20,605 19,516
million, Rs. 56.4 million and Rs. 21.3 million had been Illegal Activities 4,215 4,014
taken place at Trincomalee, Kelaniya and Ampara Regional Weather Condition 6,304 2
Offices respectively. Investigations in this connection are Reason Not Given 11,786 4,653
being carried out by the Criminal Investigation Department. Others 7,259 3,070
However, a sum of Rs. 1.075 million had been refunded by 73,973 58,353
the officers concerned in respect of the fraud at the Kelaniya
(c) It was further observed that no action had been taken
Regional Office. The amount refunded had been shown in
to rectify the defective meters in respect of 19,403
the accounts as a current liability whilst no other provisions
consumers and continued to issue water bills on
had been made with regard to these frauds.
estimated basis for a period of more than 6 months.
2.2.7 Billing and Collection of Water Supply
2.2.8 Accounts Receivable and Payable
Following observations are made in this regard:
Following observations are made:
(a) Significant differences were observed between
(a) Debtor balances in respect of Colombo Municipal
the revenue on sale of water shown in the income
Council amounting to Rs. 28,519,949, other debtors
statement and the records maintained by the
amounting to Rs. 53,078,881 and Sewerage debtors
Commercial Division of the Board and action had not
amounting to Rs. 54,036,826 had been outstanding for
been taken to reconcile the balances. As the information
over 3 years and effective action had not been taken to
maintained by the Commercial Division was being used
recover the outstanding balances.
for the Management Information System of the Board,
the validity of the information provided for decision (b) Advances paid to Contractors, Suppliers and
making purposes is open to question. According to Employees amounting to Rs. 90,083,307 had remained
the information given in the financial statements, the unsettled for over 3 years.
metered water sale and bulk water sale had understated
(c) Debit balance of Rs. 66,357,553 had been shown
by Rs. 207 million and Rs. 75 million respectively as per
in the customer advance, retention, GST payable
records maintained at the Commercial Division of the
and refundable tender deposits accounts which
Board. Further, the revenue generated through Bowser
was unrealistic.
water sale had overstated by Rs. 38 million in the
financial statements as per the record maintained at the (d) The Value Added Tax as at the balance sheet date
Commercial Division. which was accumulated from 2002 amounting to
Rs. 3,214,606,143 shown in the accounts as
(b) According to a test check carried out in the Greater
receivables had not been confirmed by the Department
Colombo Area, percentages of number of water bills
of Inland Revenue (DIR). The DIR had refunded
issued on estimations, were 16% in April 2007 and
only a sum of Rs. 21,146,228 for the period of 2004

against the amount of Rs. 1,321,465,430 shown in the 2.2.10 Non-Compliance with Laws, Rules, Regulations
accounts as receivable. Therefore, it was not possible and Management Decisions
to be satisfied in audit, whether the amount shown in Instances of non-compliance observed in audit are
the balance sheet as receivable could be recovered given below:
in future. Reference to Laws,

Rules, Regulations and
Management Decisions Non-Compliance
(e) It was observed that only a sum of Rs. 19.6 million
had been written off out of the outstanding balances of (a) Finance Act No. 38 of Reports on debtors,
Rs. 22.9 million approved to write off by the Board of 1971 creditors, stock and stores
Directors during the year under review. According to the Section 13 (5) had not been submitted
information made available, some of the balances had as specified.
been recovered subsequently. Therefore, it evidenced
(b) Public Finance The Board had reduced the
that the requests to write off the outstanding balances
Circular No. 130 of interest rate from 10% to
had been made without considering their recoverability.
18th March 1998 4.2% on loans granted to
(f) Debtor balances aggregating Rs. 3,360,739 in respect the staff of the NWS&DB
of three regional offices had been written off without with effect from May 2003,
proper approval. without the required
approval from the Treasury.
(g) It was observed that the Board had continuously
failed to recover the dues from institutional consumers
3. Financial and Operating Review
in time. However, the long outstanding receivable
3.1 Financial Results
balances of Government institutions and Government
According to the financial statements presented, the working
Quarters amounting to Rs. 19.6 million had been
of the Board for the year ended 31st December 2007 had
written off during the year under review with the Board
resulted in a net loss of Rs. 1,278,373,190 as compared
of Directors approval.
with the corresponding net loss of Rs. 214,080,235 for the
2.2.9 Lack of Evidence for Audit preceding year, thus indicating further deterioration of
Following observations are made: Rs. 1,064,292,955 in the financial results. The following table
gives a summary of the financial results at various stages:
(a) Following items in the financial statements for the year
under review could not be satisfactorily vouched in Year ended 31st December 2007 2006
audit due to non-availability of detailed schedules, age Rs. Rs.
analysis, confirmations, etc. Profit before Charging

Overheads and Other
Item Amount
Rs. Operating Expense 2,708,732,838 2,863,745,885
i. Other Debtors 47,984,264 Net Profit/(Loss) from

ii. Goods in Transit 3,287,159 Operating Activities (575,226,705) 255,271,237
iii. Customer Advances 18,088,839
Net Loss before Tax (1,223,782,622) (150,216,062)
69,360,262
Net Loss for the year
(b) The Register of fixed assets except vehicles had not after Tax (1,278,373,190) (214,080,235)
been properly maintained. Therefore, it was not possible Accumulated (Loss) (4,555,450,598) (3,050,918,878)
to be satisfied in audit as to the existence, ownership
and valuation of all the assets belonging to the Board. Even though sale of water income had increased by 10.4%,
Further, a difference of Rs. 1,250,578 had been observed the Administration and other overheads expenses also had
between the ledger balance and register of vehicles. increased by 28.4%.

3.2 Purchase of Water Meters Reservoir during dry season. After lapse of nearly
Following observations are made in this regard: 18 months NWS&DB had requested approval of
the ADB for the bid evaluation report to start the
(a) Annual water meter requirement had not been included
construction of the Barrage at a contract cost of
in the annual procurement plan.
US$ 7.4 million of which US$ 4.8 million would
(b) The Board had procured 151,000 water meters during be the loan proceed. However NWS&DB had
the year 2007 by splitting the annual requirement into raised an alternative to construct two upstream
13 orders intentionally to get the approval of the reservoirs to be used to prevent saline water
Departmental procurement board instead of getting intrusion. Later the terms of reference (TOR)
the approval from the Ministry Procurement Board for and cost estimates for the feasibility study of the
the full quantity. The opinion of the Board was that reservoirs had been turned down by the ADB
the procurements were getting delay if the correct and decided to close the loan as scheduled.
procurement process was applied. However it was Therefore the cost incurred for planning and
observed that the Board was able to supply only designing of the Barrage appears to be a fruitless
47,504 water meters out of the total requirement expenditure. Further it was observed that the
of 81,662 made by eight regions and as a result problem of salt water intrusion will continue
considerable delays occurred in providing new water and likely to spread out along with the river
connections in these regions . without any permanent solution and alternative
procedures had not been implemented in this
3.3 Delays in Implementation of Projects regard by the NWS&DB. According to the
Following observations are made: progress report prepared by the Project the
(a) Construction of Kelani Conservation Barrage overall progress even as at the end of the Project
(i) A land adjoining the Kelani River had been was 46.63% only.
acquired by the Project at a cost of Rs. 2,000,000.
(b) Third Water Supply and Sanitation Sector Project
The respective land was heavily damaged due
Following observations are made:
to erosion and it had been purchased without
considering the condition of the land. It was further (i) Advances paid to the suppliers and officers of the
observed that the cost incurred in this connection Third Water Supply and Sanitation Sector Project
was fruitless as action had not been taken by the aggregating Rs. 1,165,319 had continued to be
Project to construct the dam up to the date of shown as advances even up to 30th October 2007
this report. without adjustment being made for the supplies
and services received/obtained against these
(ii) Adequate records had not been maintained by
advances due to the weaknesses in the internal
the Project Management Unit to recognize the
control system. The Board was unable to fix the
actual cost incurred on construction of salinity
responsibility on the officers concerned.
barrage across the Kelani River and construction
of the low weirs. Further the consultancy (ii) It was planned to improve 87,000 units of
charge, salaries and loan interest amounting to household latrines under batches one and two
Rs. 127 million had continuously been shown of the Project. But only 81,596 units had been
under capital work-in-progress. completed as at the end of the year under review.
(iii) It was expected to construct a salinity barrage (iii) Value of stocks amounting to Rs. 112,596,005,
across the Kelani River with the assistance of purchased out of the Project Funds had
ADB at a cost of US$ 9.1 million to prevent saline been transferred for maintenance activities
water intrusion to the existing Ambatale Water of the NWS&DB due to the absence of proper

mechanism to identify the requirement of stock 3.4 Non-Revenue Water (NRW)
items of each subproject. Thereby huge stock of It was observed that the National Water Supply & Drainage
items purchased out of the Project Funds had Board was unable to account the 140.4 million cubic metre
been accumulated and being transferred to make of treated water costing approximately Rs. 2,378 million
use of the NWS&DB requirements. during the year under review. Following observations are
made in this regard:
(c) Integrated Water Supply Scheme for Eastern
Coastal Area of Ampara District (Phase III) (a) It was observed that the existing customers of the
The Phase III of above Project had been commenced with Board had highly compensated on their water bills by
the objective of supply of water for the people living in incurring an additional cost of Rs. 8.37 (approximately)
areas where pipe water supply was available in the Ampara per unit as at the end of the year under review due
District. Contract agreements had been signed with the to NRW. Following table shows the growing trend of
same contractor who had carried out the construction works the additional cost incurred on each unit due to NRW
of Phase I and II of the Project on 16th July 2007 under the during the last five years.
approval of the Cabinet of Ministers. Following observations
2007 2006 2005 2004 2003
are made in this regard:
NRW (cm 000) 140,491 136,630 96,690 123,959 124,442
(a) Contract agreement valued at Rs. 1,746,868,000 plus
US$ 78,878,934 had been signed by the Board without Direct cost on
exploring a funding agency. NRW Rs. million 2377.9 2040.4 1290.1 1648.4 1406.5
(b) According to the estimate of the Project a sum of Additional cost

Rs. 2,178.27 million need to be spent by the Board. borne by customers
However, action plans had not been prepared in for every unit of
this connection. consumption. Rs. 8.37 7.82 6.76 6.76 6.04
(c) Even though several shortcomings and defects found

(b) According to the information made available the NRW
in the constructions made under the Phase I and II,
percentage in respect of Colombo City was more than
the construction activities had been handed over to the
51% which was recorded as the second highest among
same contractor without considering such weaknesses.
major Asian Cities. Following observations are made in
(d) Even though an exceptional reason had not been this regard:
found for single contractor as per Paragraph 3.5 of
(i) Although a foreign-funded Project was launched
the Government Procurement Guide Lines, the whole
in 2003 with the objective of rehabilitating part of
activities of the contract had been awarded to a
the distribution net work in the Colombo City to
single contractor.
reduce NRW, the project had been abandoned
(e) The information included in the feasibility study report after incurring more than Rs. 354 million due to
of the Project had not been agreed with the information lack of proper management.
collected from other sources thus indicating that proper
(ii) Action had not been taken to disconnect and
forecasts had not been carried out in this regard.
give individual connections in respect of 3,500
(f) According to the Project proposals, a large scale common stand posts in Colombo City.
purification centre and a drainage system had been
(iii) Effective action had not been taken by the Board
proposed without considering the factors such as other
to reduce billing on estimated basis and rectify
water resources of the area and the density of the
the defective meters identified.
population in the area, thus indicating per capita cost
of the Project was very high.

(iv) A special unit had been established to deal with (d) Action had not been taken by the Board to reconcile
the NRW issues and Rs. 56 million had been the differences between the stock ledger balances
incurred on its operations during the year under and physical balances, and fix the responsibility to the
review. However the NRW percentage in respect officers concerned.
of Greater Colombo Area had gone up during
(e) Action had not been taken with regard to slow moving
the year under review as compared with the
and non-moving items valued at Rs. 111,580,668,
preceding year.
which were identified by the Board of Survey.
3.5 New Connections (f) No proper system had been introduced with regard to
The mission of the Board is to serve the Nation by providing safe custody of stocks and proper storage.
sustainable water and sanitation solutions ensuring total
user satisfaction. However, it was observed that the level of 3.7 Utilization of NWS&DB Resources
satisfying the demand for water supply was not satisfactory Thirty three employees and 11 vehicles belonging to the Board
even the Board had implemented several major water supply had been released to other Institutions and Ministries during
projects using various foreign and local resources. the year under review, disregarding the instructions given in
paragraph 8:3:9 of the Public Enterprises Circular No. PED/12
(a) According to the information collected from 15 regional
of 2nd June 2003. Salaries and other expenses relating to thirty
offices in 2006, only 77,451 or 53% new connections
employees had also been incurred by the Board.
had been completed out of 146,924 applications
received for new connections in 2006. The position 3.8 Budgetary Control
with regard to 2007 in respect of 08 regional offices
Significant variances were observed between the Budget
was that the Board could provide only 52,433 new
and the actuals thus indicating that the budget had not
connections out of 75,499 applications received.
been made use of as an effective instrument of Financial
(b) It was observed that the long delays had been occurred Management Control.
for providing new connections and as a result, undue
competition among the applicants had prevailed. 4. Systems and Controls
Weaknesses observed in systems and controls were brought
3.6 Stores Management to the notice of the Board from time to time. Special attention
Following observations are made: is needed in respect of following areas of control:
(a) Even though a computerized inventory management (a) Debtors and Creditors
system had been implemented at a cost of Rs. 3 million
(b) Reduction of Non-Revenue Water
at the Main Stores, the intended objectives could not
(c) Internal Audit
be achieved due to the failure of generating adequate
information through the system. Further, a difference of (d) Accounting
Rs. 50,299,808 had been observed between the ledger (e) Fixed Assets
balances and computerized inventory system in respect (f) Stocks
of Main Stores.
(g) Implementation of Projects
(b) Master stock ledger had not been prepared and as a (h) Contract Administration
result existing stock items in different stores had been
(i) Cash and Bank Balances
purchased again for other projects in other regions
without verifying the availability of stocks.
(Sgd.)
(c) No proper and updated stock levels such as minimum, S. Swarnajothi
reorder or buffer stock had been maintained. Auditor General

Abbreviations
ADB - Asian Development Bank MUDWS - Ministry of Urban Development and

AFD - Agence Francaise de Development Water Supply
B&E - Bechtol & Emerson NHDA - National Housing Development Authority
BOI - Board of Investment NORAD - Norwegian Assistance for Development
BOQ - Bill of Quantity NPA - National Procurement Agency
CBO(s) - Community Based Organization(s) NRW - Non-Revenue Water
CCTV - Closed Circuit Tele Vision NSC - National Steering Committee
CECB - Central Engineering Consultancy Bureau NTU - Nephelometric Turbidity Units
CMC - Colombo Municipal Council NWS&DB - National Water Supply & Drainage Board
cu.m. - cubic metre NWSDB - National Water Supply & Drainage Board
DANIDA - Danish International Development Agency O&M - Operation & Maintenance
DI - Ductile Iron OIC - Officer In Charge
DIR - Department of Inland Revenue ORET - Development-Related Export
DS - Divisional Secretariat Transitions Programme
ECTAD - Eastern Coastal Towns of Ampara District P&D - Planning & Designs
EKN - Swedish Export Guarantee Board PAC - Project Appraisal Committee
EPF - Employees Providence Fund PS(s) - Pradeshiya Sabha(s)
ERD - External Resources Department PVC - Poly Vinyl Chloride
ETF - Employees Trust Fund RPE - Reserve Pays Emegeants
GI - Galvanized Iron RSC - Regional Support Centre
GIS - Geographical Information System SCADA - Supervisory Control and Data Acquisition
GM - General Manager SIDA - Swedish International Development Agency
GN - Grama Niladari SLAS - Sri Lanka Accounting Standards
GND(s) - Grama Niladari Division(s) STAART - Sri Lanka Tsunami Affected Areas Recovery
GOSL - Government of Sri Lanka and Take-off Project
GPS - Global Positioning System UC - Urban Council
GST - Good & Services Tax UDA - Urban Development Authority
ICTAD - Institute for Construction, Training & UNICEF - United Nations International Children’s
Development Education Fund
IT - Information Technology UPS - Uninterruptible Power Supply
JBIC - Japan Bank for International Cooperation USAID - United States Aid for International
JICA - Japan International Cooperation Agency Development
KCWDP - Kandy City Wastewater Disposal Project USTDA - United States Trade and Development Agency
KfW - Credit for Reconstruction VAT - Value Added Tax
LTRT - Lanka Tsunami Response Team WS - Water Supply
M&E - Mechanical & Electrical WS & SP - Water Supply & Sanitation Project
MC - Municipal Council WSP - Water Supply Project
MGD - Million Gallons per Day WSS - Water Supply Scheme
MOU - Memorandum of Understanding WTP - Water Treatment Plant
MTV - Maharaja Tele Vision

Corporate Information
The National Water Supply & Drainage Board is a

Statutory Board enacted by the Parliament under
the National Water Supply and Drainage Board Law
No. 2 of 1974. The registered office of the NWSDB
is located at Galle Road, Ratmalana where the
principal venue of business is located.
Telephone: 2611589, 2637194, 2612566

Hunting No.: 2638999
Fax: 2636449
e-mail: nwsdbch@sltnet.lk
Web: www.waterboard.lk

NWSDB Annual Report 2007

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NWSDB Annual Report 2007

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Vision

To be the most prestigious utility

z Improve operational efficiency

z Achieve customer satisfaction

z Increase commercial viability

z Ensure greater accountability and

z Promote institutional development

z Provide facilities and service support to

The National Water Supply & Drainage Board had

In view of the vital importance of the operations

The National Water Supply & Drainage Board is

Around 77% of the population has safe access

06 Corporate Plan 2007-2011

08 Our Key Players

56 Our Employees, Our Strength

62 Report of the Audit and Management Committee

Hon. Minister of Water Supply & Drainage,

ANNUAL REPORT AND FINANCIAL STATEMENTS - 2007

In terms of Section 14 (2) of the Finance Act No. 38 of 1971,

National Water Supply & Drainage Board

The new Corporate Plan 2007-2011 commenced implementation

Implementation of ongoing capital projects and preparation of new

National Water Supply & Drainage Board

Restructuring of the NWSDB was initiated in the year

National Water Supply & Drainage Board

It was specified that quarterly progress on the Corporate Action

It is required to have timely review for the successful achievement

The review of the Corporate Plan will -

z determine whether the objectives and actions are in line with

z re-emphasize actions and activities;

z streamline the progress monitoring procedure; and

z incorporate necessary amendments to the Corporate Plan and

It is planned to hold a workshop in February 2008 for the

National Water Supply & Drainage Board

Goal Key Objectives Target End Achievement

2. Improve operational efficiency 2.1 NRW (island-wide) 33.0% 33.09%

3. Achieve customer satisfaction 3.1 Public awareness programmes to be

5. Ensure greater accountability Initiatives were taken to develop a whole range of

6. Promote Institutional Development 6.1 In-house training 150 113

National Water Supply & Drainage Board

Secretary to the Board

13 Additional General Managers

National Water Supply & Drainage Board

02. Eng. S. K. S. H. K. Suriyaarachchi - up to 16.04.2007

08. Dr. C. K. Shanmugarajah Eng. S. K. Wijetunga (Western)

Director General (Department of Development Finance), M.P.H. (Univ. of Hawaii)

Ministry of Finance & Planning

The Board met on 17 occasions during the year 2007.

National Water Supply & Drainage Board

Eng. (Mrs.) P. N. S. Yapa (Western - Central) Netherlands)

B.Sc. (Eng.), MIE (SL), C.Eng., M.Sc. (Struct. E.), UK

Eng. (Mrs.) M. K. Bandara (Western - North)

Eng. (Mrs.) T. P. Lamabadusuriya

National Water Supply & Drainage Board

National Water Supply & Drainage Board

A Tap in Disrepair? Water Down the Drain? It is a fact

Water is a Precious Resource. Let’s Save It!